Covid has a massive impact on UK labour market. The Covid pandemic has left the UK with another 50,000 unemployed people, reaching 1.35 million.
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Due to Covid, UK unemployment rate is up by 50,000 to 1,35 million in the first three months of 2020. Covid-19 has had a major impact on the UK labour market. The Office for National Statistics (ONS) found work hours decreased in late March.
Then the UK went into lockdown and its April figures showed signs of a further fall in employment.
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Why is Uk unemployment up by 50,000?
Job vacancies have massively decreased. Sir Christopher Pissarides, from the London School of Economics, told that hours of work figures “fell catastrophically” from January to March. The vacancies figures showed the labour market “more or less stopped functioning” during the period. However, he noted employment figures were “not as bad” as they could have been and suggested the government’s scheme had managed to prevent a greater increase in joblessness.
Can the government cope with UK unemployment rate up?
The ONS data showed that people claiming unemployment benefits in the UK, as the Claimant Count reached its highest level since 1996 in April at 2.1 million in total. Figures showed a surge of 856,000 people submitting benefits claims in April, during the first full month of lockdown. This situation puts pressure on the Prime Minister’s to restart the economy as soon as possible.
Therese Coffey, the work and pensions secretary, told the government that they would be able to cope with the sharp increase in claims for unemployment support but noted the country should be prepared to see the unemployment rate increase “significantly” in the coming months.
Sectors affected with UK unemployment rate up
Tory MP said that he thinks that regarding the hospitality sector. He believes that we need to pay close attention. We also need to manage the process and give them so flexibility.
The World Health Organisation has advised keeping at least one metre between each other to reduce the risk of catching Covid. However, the UK uses the two-metre rule.
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