Coronavirus UK: 649,000 people lose their jobs during lockdown – live updates

The ONS figures show that vacancies fell 463,000 between March and May to a record low of 333,000 as companies froze hiring in the face of the coronavirus crisis.

The pace of job cut announcements has also showed no sign of slowing down in recent weeks, with some 75,000 job losses announced last month alone, according to recent analysis by the PA news agency.

This points to further grim jobless figures in the months to come.

The ONS data also showed pressure on wages, with average weekly wages including bonuses down 1.2% year over year in May – a sign of the impact of millions of furloughed workers on 80% pay.

Jonathan Athow, the ONS’s deputy national statistician, said:

Pay is now falling on most measures, with many furloughed workers not having their wages topped up by their employers.

Matthew Percival, director for people and skills at the CBI business group, told PA:

These figures show serious difficulties for hundreds of thousands of people, but unfortunately this is still only the beginning of the impact on the labour market.

Flattening the unemployment curve will remain paramount.

The shadow chancellor Anneliese Dodds has said the latest unemployment figures from the ONS underlined the need for continuing government support to those sectors particularly hard hit by the coronavirus crisis.

“Clearly there are some trends that can be discerned – the number of hours worked going down and the amount of economic inactivity going up as well,” she told BBC Radio 4’s Today programme.

I think this is a very concerning time because we could see that being worsened by changes going ahead with the furlough scheme.

We do think that for particularly badly affected sectors there does need to be continuing support, otherwise we will see extra waves of people potentially moving into unemployment or economic inactivity.

The ONS’s early estimates showed the number of paid employees fell by 1.9% year on year in June to 28.4 million, and by 0.3% compared with the previous month.

As we’ve reported earlier, this suggests the number of UK workers on company payrolls has fallen during lockdown by nearly two-thirds of a million as the coronavirus crisis claimed another 74,000 jobs last month.

The ONS said the pace of job losses appeared to have slowed in June, with claims under Universal Credit by the unemployed and those on low incomes falling by 28,100 between May and June to 2.6 million.

But the claimant count has more than doubled since March – soaring 112.2% or by 1.4 million – in a sign of the mounting jobs crisis.

The ONS said unemployment fell 17,000 between March and May to 1.35 million, with the rate unchanged at 3.9%. Experts said this masked a fall in employment, down 126,000 in the quarter to 32.95 million, with the rate dropping to 76.4%.

With 9.4 million people on furlough classed as employed, the true impact is expected to only be shown after the current support scheme ends in October.

The ONS figures suggest the increase in job losses were not as bad as many feared, partly due to large numbers of businesses placing employees on furlough. This suggests the full impact of the pandemic on jobs won’t be known until the furlough scheme ends in October.

But the early estimates show 649,000 fewer people in employment in June compared with March.

ONS analysis suggests around half a million employees who said they were temporarily away from their jobs due to the pandemic were receiving no pay.

They also indicate that 76.4% of people aged 16-64 were in paid work between March and May.

There was also an all-time record low level of vacancies between April and June, 333,000 – 23% lower than the previous record, which was April 2009.

ONS analysis also found that pay is now growing at a slower rate than inflation, especially in sectors where furloughing is more prominent.

Good morning! I’m Lucy Campbell, here to take you through the latest developments in UK politics and the coronavirus outbreak as the morning unfolds.

The number of UK workers on payrolls fell by 649,000 between March and June as the coronavirus crisis claimed another 74,000 jobs last month, according to the Office for National Statistics.

Jonathan Athow, deputy national statistician at the ONS, said:

As the pandemic took hold, the labour market weakened markedly, but that rate of decline slowed into June, though this is before recent reports of job losses.

There are now almost two-thirds of a million fewer employees on the payroll than before the lockdown, according to the latest tax data.

The Labour Force Survey is showing only a small fall in employment, but shows a large number of people who report working no hours and getting no pay.

He added:

There are now far more out-of-work people who are not looking for a job than before the pandemic.

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Email: lucy.campbell@theguardian.com
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