730,000 workers lost their jobs amid pandemic
As the number of coronavirus cases around the world continues to grow, the ONS confirms shocking figures: in UK 730,000 employees lost their jobs since March 2020.
Three quarters of a million jobs were lost since the start of coronavirus, ONS figures show. The shocking number represents a worrying sign, as it would be the largest fall since last decade and economists warn it is only going to get worst.
The number of employees on payrolls fell by 730,000 since March 2020, while pay also dropped down to 1,2% and regular pay down 0,2%. The ONS also showed a rise in zero-hours contracts, increasing by 156,000. The unemployment rate remains the same, sticking to a 3,9% which, as economists explain, it is because people were mostly inactive, in furlough, rather than jobless.
The number of hours worked also fell by a record 18%, the lowest level since 1994.
Youngest and oldest employees seem to be the most affected by this crisis. Jonathan Athow, Office for National Statistics deputy national statistician for economic statistics, said: “Figures from our main survey show there has been a rise in people without a job and not looking for one, though wanting to work. In addition, there are still a large number of people who say they are working no hours and getting zero pay.
“The falls in employment are greatest among the youngest and oldest workers, along with those in lower-skilled jobs.
“Vacancies numbers began to recover in July, especially in small businesses and sectors such as hospitality, but demand for workers remains depressed.”
According to the figures, people are changing their status from self-employed to employed despite remaining in the same job. Also, the number of non-UK EU workers dropped by 284,000, the lowest since 2015.
Tony Wilson, director of the Institute for Employment Studies tweeted:
Dan Hanson, Bloomberg economist, says UK unemployment rate will probably be doubled by the end of the year. He affirmed: “A sharp fall in employment and the subdued level of vacancies both suggest the labour market has taken a significant hit in recent months.
“We expect the true cost to be revealed once the government’s furlough scheme ends in October. Our baseline forecast sees the jobless rate peak at 8.5% at year-end.”
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