United Kingdom loses 700000 jobs to pandemic as pressure mounts for aid

Marco Green
September 15, 2020

The number of employees on payrolls in August is down 695,000 from March the Office for National Statistics said on Tuesday (Sept 15).

Compared with the same time past year there were 2,000 fewer jobs.

"This includes a National Transition Training Fund to support up to 10,000 people at risk of redundancy or unemployment and the Scottish Youth Guarantee, worth £60 million, will ensure every young person has the opportunity of work, education, or training".

Most economists think the unemployment rate could more or less double by the end of the year to around 8%.

"However, the decline in employees on payrolls and the rise in the claimant count in August as the furlough scheme began to taper is a clear warning that the full impact of coronavirus on the United Kingdom labour market is yet to come".

In June, 316,500 employees in Wales were paid 80% of their salaries under the United Kingdom government's furlough scheme, figures from the Treasury showed.

Nationally around 695,000 United Kingdom workers have been removed from the payrolls of British companies since March when the coronavirus lockdown began, according to official figures.

"That means building on the furlough scheme by setting up a new job retention and upskilling deal, to keep people employed at firms that have a viable future", she said.

"Easing of lockdown restrictions and a more flexible JRS in July have led to signs of stabilisation in vacancies and hours worked", said director Ian Price.

"Looking ahead, a successor to the Job Retention Scheme is needed to protect jobs and businesses". Already, it has announced a bonus for those employers keeping workers on.

The big question is how many of them will have a job to return to when the scheme ends in October.

Figures for May to jolly 2020 show an increase in the unemployment rate; despite this increase and an increase in the number of redundancies, the employment rate was up.

The rate of decline in employee pay growth slowed in July following strong falls in the previous three months. That could now be happening with unemployment.

Other reports by Click Lancashire

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