The UK’s unemployment rate remain steady between February and April but there are worrying signs for employment prospects.

The number of UK workers on payrolls fell by more than 600,000 between March and May as lockdown hit Britain’s labour market, according to the Office for National Statistics (ONS)

Meanwhile, the number of vacancies in May has fallen to a record low.

Labour Force Survey (LFS) data, covering the period up to end of April 2020, show weakening employment rates, with the self-employed and men seeing some reduction in employment. The largest changes are seen in the number of people temporarily away from work, including furloughed workers, which rose by 6 million at the end of March into April, leading to a large fall in hours worked.

Employee average pay growth slowed notably in April 2020, and the three months to April saw total pay fall in real terms for the first time since January 2018; pay declined in industries where furloughing was most prominent, many of these being the lowest-paying industries, in particular accommodation and food service activities.

ONS Deputy National Statistician for Economic Statistics Jonathan Athow said: “The Claimant Count was up again, though not all of these people are necessarily unemployed. Vacancies dropped to a record low in May, though there is some evidence this may have now bottomed out.

Responding to the figures, Labour’s shadow work and pensions secretary Jonathan Reynolds said: “These numbers show that unless the Government acts, the UK is likely to face mass unemployment on a scale not seen for decades once the furlough scheme is withdrawn.

“The Government has been slow at every stage of this crisis – they cannot afford to be slow again in responding to this threat.

“There must be urgent action from the Government to assist the hardest-hit regions and specific support for sectors particularly exposed to the nature of the Covid crisis.”

Dave Innes, Head of Economics at the Joseph Rowntree Foundation said:

“Today’s figures show that the furlough scheme has successfully kept millions of businesses and workers afloat during lockdown. But as we enter a deep recession there are worrying signs that the number of people in work are falling. It is especially concerning that sectors with high levels of in-work poverty before the crisis, like food and accommodation, have been hit hardest.

“As the furlough scheme begins to unwind it is vital that the government focuses its attention on avoiding a second wave of unemployment. That should include creating jobs, particularly in places that have seen the biggest increases in unemployment, as well as giving people opportunities to gain new skills to help them navigate a rapidly changing jobs market. Alongside this, the government should also boost benefits so that people are not pulled into poverty if they lose their jobs.

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