Numbers of unemployed mounting on a daily basis
Over the three months of lockdown – from March to June – 649,000 people have dropped off the UK’s payroll. A further 74,000 workers were unemployed last month with 2.6 million people now reported to be receiving benefits.
The statistics paint a bleak – but incomplete – picture. Payroll excludes the self-employed and the 9.4 million furloughed workers still officially registered as employed.
“The pain can only be delayed so long, and the crunch will come when the furlough scheme closes in the autumn,” said Ulas Akincilar, Head of Trading at Infinox.
Many employed people have seen their hours or pay cut. According to the Office for National Statistics (ONS), total weekly hours worked in the UK have fallen by a record 175.3 million, or 16.7% since the beginning of the crisis.
Vacancies are also at their lowest level since 2001 with 23% fewer than the previous record low in 2009, following the financial crisis. Last week Chancellor Rishi Sunak announced a “kickstart scheme” which aims to create jobs for young people through a £2bn investment. However, many critics say the various job schemes do not go far enough.
“The response from this recession cannot be like the last if we are to recover,” says GMB’s acting general secretary, John Phillips. “This country cannot endure another decade of weak growth and cuts to services – we need a Government prepared to make bold investment in jobs, skills and industries.”
The benefits claimant count has risen 112.2% or 1.4 million since March, and almost a third of UK firms have further plans for redundancies over the next three months.
The Bank of England governor, Andrew Bailey, has warned that the reluctance to travel is a driving force in the struggle to restart the economy. In a conversation with Conservative MPs at the 1922 Committee, Bailey pointed to the current government advice which is to avoid public transport where possible, with trains remaining at 20% capacity. The government is expected to reveal new travel guidelines in the coming weeks.