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Seven charts on the coronavirus jobs market | Seven charts on the coronavirus jobs market |
(30 days later) | |
Millions of people across the UK have had their working lives upended because of the coronavirus pandemic. | Millions of people across the UK have had their working lives upended because of the coronavirus pandemic. |
While many are working from home, others have been furloughed for weeks or even made redundant. | While many are working from home, others have been furloughed for weeks or even made redundant. |
So who has been affected most to date by job losses? And which sectors have been worst hit? | So who has been affected most to date by job losses? And which sectors have been worst hit? |
Job losses | |
The UK unemployment rate held steady at 3.9% in the three months to April, according to the Office for National Statistics (ONS). | |
But separate figures from the ONS show that the number of workers on UK payrolls dropped by more than 600,000 between March and May. | |
Meanwhile, the number of people claiming work-related benefits jumped 23% in May to hit 2.8 million. | |
This figure doesn't include everyone who is out of work, since not all can claim assistance, but it does provide a snapshot. It also captures some low-income workers. | |
These early estimates hint at the impact of lockdown measures in the UK, which has seen more than nine million workers furloughed under the government's job retention scheme. | |
Some economists say the full impact on the jobs market won't be felt until the furlough scheme ends in October. | |
Fewer hours worked | |
UK workers are clocking fewer hours as parts of the economy are at a standstill after lockdown measures were introduced on 23 March. | |
The total number of weekly hours worked recently saw its largest annual fall since records began in 1992. | |
The ONS said the total number of weekly hours worked in the three months to April had dropped to 959.9 million - down by a record 94.2 million, or 9%, on the previous year. | |
The drop in hours was "partly due" to the number of employees who have been furloughed, it added. | |
Job vacancies dip | |
The estimated number of vacancies in the UK fell sharply during the 2008 financial crisis. | |
Since 2012, they've generally been on the up, reaching a record high of 855,000 between November 2018 and January 2019. | |
But between March and May this year, there were an estimated 476,000 vacancies in the UK, 342,000 fewer than in the previous quarter. | |
Recent research by the IFS also suggests that workers across the board could have fewer options due to the coronavirus pandemic. | |
Having analysed jobs posted on the Department for Work and Pensions' website in real-time, it found that they had started to drop off around mid-March. | |
By the time the lockdown was announced, firms had stopped posting new vacancies almost entirely. | |
Young people hardest hit | Young people hardest hit |
Young workers seem to have been most impacted by lockdown measures so far. | Young workers seem to have been most impacted by lockdown measures so far. |
Recent research by the Resolution Foundation think-tank suggests that 9% of those aged between 18 and 24 have lost their jobs altogether, the highest of any age group. | |
Meanwhile, a previous study by the Institute for Fiscal Studies (IFS) found that shutdown sectors employed nearly one-third of all workers under the age of 25, or 25% of young men and 36% of young women. | |
That compares to just one in eight workers aged 25 and over. | That compares to just one in eight workers aged 25 and over. |
The IFS said that young people, women and the lowest earners will be most affected economically by the pandemic. | The IFS said that young people, women and the lowest earners will be most affected economically by the pandemic. |
Sector shutdown | Sector shutdown |
Many staff have been furloughed in sectors that have been forced to shut down during lockdown. | |
Those include retail, leisure and hospitality, where a high proportion of women work. | Those include retail, leisure and hospitality, where a high proportion of women work. |
Although non-essential shops have since reopened in England and Northern Ireland, pubs and restaurants will not be allowed to open their doors until July at the earliest. | |
The largest proportion of the workforce being furloughed was recorded in accommodation and food service activities, which includes hotels, restaurants and cafes. | |
That was followed by those working in construction and manufacturing, according to one ONS survey. | |
North East sees most out of work | North East sees most out of work |
The coronavirus lockdown has caused severe disruption to business activity across the UK. | The coronavirus lockdown has caused severe disruption to business activity across the UK. |
Some parts of the country will feel the negative effect on their local economies more than others. | Some parts of the country will feel the negative effect on their local economies more than others. |
The North East of England had the highest unemployment rate estimate for the three months to the end of April at 5.2%. | |
The largest rise in the unemployment rate on the previous quarter was seen in Scotland, where it went up by 1.1 percentage points, followed by the West Midlands, which saw a rise of 0.3 percentage points. | |
These figures can be volatile, and for now it is too early to say to what extent the jump in the estimate for Scotland is part of a longer term trend, the ONS said. | |
One report by the Centre for Cities found that the economic pain inflicted by Covid-19 will be felt unequally across the UK, with workers in more affluent areas such as the South East able to work from home, for example. | One report by the Centre for Cities found that the economic pain inflicted by Covid-19 will be felt unequally across the UK, with workers in more affluent areas such as the South East able to work from home, for example. |
The coronavirus crisis risks widening regional inequalities, and frustrating government efforts to "level up" prosperity across the UK, it suggests. | The coronavirus crisis risks widening regional inequalities, and frustrating government efforts to "level up" prosperity across the UK, it suggests. |
Global workforce | Global workforce |
Following the financial crisis, global unemployment increased by 22 million, according to the International Labour Organization. | Following the financial crisis, global unemployment increased by 22 million, according to the International Labour Organization. |
A previous study by the group found that the majority of those job losses occurred across more developed economies. | A previous study by the group found that the majority of those job losses occurred across more developed economies. |
But the coronavirus crisis has disrupted supply chains around the world in a way never seen before. | But the coronavirus crisis has disrupted supply chains around the world in a way never seen before. |
As some governments lift lockdown restrictions, it remains to be seen what the full impact on the jobs market will be. | |
In the United States, employers cut more than 21 million jobs in March and April, as lockdowns forced businesses to shut their doors. | |
In April, the unemployment rate hit 14.7%, the highest level since the Great Depression in the 1930s. | |
This fell slightly to 13.3% in May as the government released billions of dollars in emergency aid to businesses to cover wages for employees, encouraging them to rehire staff. | |
But more than 30 million people continue to collect unemployment benefits, according to the US Labor Department. | |
The Organisation for Economic Co-operation and Development (OECD) has said that for many, recession is "unavoidable". | The Organisation for Economic Co-operation and Development (OECD) has said that for many, recession is "unavoidable". |