Young hardest hit after London suffers more in Covid jobs crisis

YOUNG people are being hit hardest by the economic fallout from the pandemic with the number of 18 to 24-years-olds in work falling at record rates, official figures revealed today.

During the three months to July, 146,000 fewer in the age group were in employment — underlining the bleak prospects for school leavers and graduates following the lockdown.

There were also signs that London is suffering more than the rest of the country with 104,000 jobs disappearing between March and June.

Latest data from the Office for National Statistics (ONS) show that a total of 695,000 UK workers have disappeared from the payrolls of British companies since Boris Johnson issued the “stay at home” order in March.

The official unemployment tally is also starting to edge up after having stayed virtually unchanged through the recession in part thanks to Chancellor Rishi Sunak’s furlough scheme, which is due to end next month. The number of people looking for work increased by 62,000 to 1.4 million for the three months to July, lifting the official unemployment rate from 3.9 per cent to 4.1 per cent. It was

the first time the jobless rate has increased since the start of the pandemic. However, there were also some “green shoots” with the number of vacancies up 30 per cent to 434,000 in the three months to August and the total number of hours worked also bouncing back from lockdown lows.

But there will be concern in Downing Street about a surge in the number of people “signing on” for benefits because they cannot find work. A further 73,700 joined the claimant count between July and August, bringing the total to 2.7 million. Since March, the claimant count has increased by 120.8 per cent or 1.5 million. In two London boroughs Barking and Dagenham and Brent, the number claiming work-related benefits has passed the one in 10 mark.

Debapratim De, senior economist at consultants Deloitte, said: “The furlough scheme has been very effective in cushioning the blow from the pandemic to the labour market. But cracks are beginning to show, with unemployment rising — particularly among younger workers — and redundancies hitting their highest level in almost eight years.”

Mr Sunak said: “This is a difficult time for many as the pandemic continues to have a profound impact on people’s jobs and livelihoods. That’s why protecting jobs and helping people back into work continues to be my number one priority. We’ve taken decisive action throughout this crisis, introducing the furlough scheme and outlining a comprehensive Plan for Jobs to support, protect and create opportunities. And we’ll continue to do that through the autumn, including by supporting people back to work through policies such as our Job Retention Bonus, worth up to £9 billion.”

The ONS also reported that average wages were one per cent lower than a year ago, with particular slumps in construction, retail and hospitality.