Coronavirus: UK payrolls shrink by 649,000 jobs in lockdown

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Image copyright Getty Images The variety of employees on UK payrolls has fallen by 649,000 between March and June, official figures point out.The variety of individuals claiming work-related advantages – together with the unemployed – was 2.6 million.However, the full was not as huge as many feared, as a result of massive numbers of companies have put workers on the government-backed furlough scheme.Economists say the complete impact on employment won’t be felt till the scheme ends in October. “Despite the lack of overall increase in the number of unemployed, the estimated number of people unemployed aged 16 to 24 years increased by 47,000 on the year while other age groups remained steady,” mentioned the Office for National Statistics (ONS).The ONS added {that a} bigger than standard variety of these dropping their jobs weren’t at present on the lookout for one other one and have been due to this fact economically inactive relatively than unemployed.”In addition, an increased number of respondents who were previously unemployed have moved to economic inactivity,” it mentioned, “suggesting that some who were previously unemployed are no longer looking for work.””The furlough scheme has made the monthly reading of job numbers rather meaningless, given nine million people are technically neither employed nor jobless,” mentioned Jeremy Thomson-Cook, chief economist at monetary companies agency Equals.”The only guarantee is that some will be looking for new work as the scheme winds down, and some will not be able to given changes in their living circumstances driven by the pandemic.”Wage progress has fallen, which might both be attributable to decrease paid employees re-joining the workforce, or from employers failing to prime up furloughed wages after they beforehand had. As with all jobs knowledge for the time being, we’ve to look by way of the prism of the furlough system to see what’s what.”

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