Tue 19 May 2020:
Unemployment benefit claims in the UK have increased to 2.1 million, their highest level since 1996, according to new figures published on Tuesday, as the coronavirus pandemic continues to extract an economic toll.
The Office for National Statistics (ONS), the UK’s official statistics agency, said that 856,500 more people claimed welfare last month – the largest rise on record for one month, 69%.
The data covered the last three months, including the period following the national lockdown that was imposed on March 23.
Over this period, unemployment increased by 50,000 to reach 1.35 million. The number of paid British employees dropped by 1.6% in April compared with March – around 450,000 workers.
John Athow, the ONS deputy national statistician for economic statistics, said: “While only covering the first weeks of restrictions, our figures show COVID-19 is having a major impact on the labour market.
“In March employment held up well, as furloughed workers still count as employed, but hours worked fell sharply in late March, especially in sectors such as hospitality and construction.
“Through April, though, there were signs of falling employment as real-time tax data show the number of employees on companies’ payrolls fell noticeably, and vacancies were sharply down too, with hospitality again falling steepest.”
The ONS warned that the unemployment rate could increase to 10% in the second quarter of the year.
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