Rolling coverage of the latest economic and financial news, as roughly three districts of a million people lose their jobs since March
Payrolls have fallen by 730,000 since crisis beganONS: Worst quarter for jobs since the financial crisisAverage earnings fell in April-June as bonuses and hours chippedBut unemployment rate sticks at 3.9%
9.18 am BST
Stock market brokers haven’t been daunted by word of the biggest quarterly fall in UK employment in over a decade.
Shares have pranced in London, with the blue-chip FTSE 100 index rising by 1.7% or 105 points to 6156.
9.17 am BST
This chart shows how the furlough intrigue has saved the jobless rate down the summer months 😛 TAGEND
UK unemployment rate remains at 3.9% in 3 month to June, but doesn’t include those on furlough. ONS says ‘approximately 7.5 million were temporarily away from work in June 2020 ‘. The number of employees in the UK on payrolls is now down 730,000 compared with March 2020. pic.twitter.com/ 00 Rb5MZcny
9.08 am BST
Jonathan Reynolds MP, Labour’s Shadow Work and Pensions Secretary, argues that the sharp fall in employment shows that more assistance should be directed to fighting firms 😛 TAGEND
“Labour has repeatedly forewarned the Government their one length fits all coming will lead to job losses. These digits justify what we feared – Britain is in the midst of a activities crisis.
“It is extremely worrying that this increase in unemployment has hit older workers, the self-employed and part-time proletarians hardest.
8.49 am BST
Minister for Employment Mims Davies MP demands the government is taking steps to support the jobs market through the pandemic.
Responding to this morning’s drop in employment, she says 😛 TAGEND
“Today’s figures register more of the impact the virus is having on both our economy and labour market meaning many parties will be understandably concerned about the future- which is why we’ve set out our Plan for Jobs, to protect, create and support occupations as we improve back our economy.
“We’ve once protected more than 9.5 million jobs throughout the said period with the furlough intrigue, patronized more than two million self-employed people and paid out billions in lends and grants to thousands of businesses. Our Eat Out to Help Out scheme is supporting thousands of jobs in the hospitality sector and helping raise confidence, and the key stroke to stamp duty has led to a surge in house auctions and a welcome increase to the economy.
8.44 am BST
As I was saying ….. here’s TUC General Secretary Frances O’Grady demanding that Rishi Sunak varies course, and widens the furlough arrangement.
“The alarm bells couldn’t be reverberating any louder. Ministers must act now to protect and create jobs.
“That makes extending the job retention scheme for businesses with a viable future who can’t operate because of virus rules. It represents investing in the jobs we need for the future in lettuce manufactures, social care and across the public sector. And it makes ensuring a decent safety net is in place to help those who lose their jobs get back on their paw.
8.42 am BST
British finance minister Rishi Sunak has responded to the drop in employment, warning that the government can’t protect every undertaking affected by COVID-1 9.
“I’ve always been clear that we can’t protect every chore, but … we have a clear plan to protect, brace and create jobs to ensure that nobody is left without hope.
8.30 am BST
Average earnings precipitated across the UK private sector in April-June compared to a year ago, although those in business and finance ascertain their compensate increase.
Earnings too rose in the public sector, as this chart of nominal earnings( ie, before inflation) proves 😛 TAGEND
8.12 am BST
The slump in employment highlights the need for effective test-and-trace methods, says Matthew Percival, CBI Director for People and Skills 😛 TAGEND
“This data shows the destroying label left on the labour market by the coronavirus crisis. With the UK under strict lockdown measures to contain the virus in the quarter to June, fall in jobs and hours worked is to be expected.
“More positively, there is a small rise in vacancies, particularly in the hospitality sector as limiteds were relaxed.
No sign of a recuperation hitherto in total working hours in June( probably the best single measure of whether beings are actually acting ). Does not bode well for tomorrow’s GDP illustrations .. pic.twitter.com/ W7EZ9wKzIE
“Figures for June highlight the effectiveness of the Job Retention Scheme in shielding workers during the lockdown months. But they mask the true territory of the job market, as 730,000 employees lost their jobs in the second quarter.
“As the Job Retention Scheme unrolls, we expect unemployment to rise instantly in the fourth quarter. That could see unemployment average over 6% this year compared to only 3.9% at present.
The fractures evident in the latest batch of labour market data are most likely to soon turn into a chasm with the unemployment rate rising from 3.9% to around 7% by mid-2 021. The 220,000 q/ q fall in employment in Q2( consensus 288,000) was nowhere near as big as the 23% q/ q drop in GDP due to the success of the job furlough planned. And the 300,000 rise in inactivity means that the ILO unemployment rate stood at 3.9% in June , no higher than in February.
Nonetheless, every other labour market indicator was pretty awful.
8.09 am BST
Today’s undertakings report too shows the scale of the financial shutdown in the final quarter, as houses suspended creation and furloughed staff.
The amount of manipulate imparted across the UK economy dashed by over 18% in April-June, a record fall, the ONS reports.
Between January to March 2020 and April to June 2020, total actual weekly working hours in the UK decreased by a record 191.3 million, or 18.4%, to 849.3 million hours.
This was the largest quarterly decline since estimates had been launched in 1971, with total hours plummeting to its lowest level since September to November 1994. Average actual weekly hours fell by a record 5.6 hours on the quarter to a record low of 25.8 hours
8.01 am BST
The number of vacancies in the UK has risen, but remains worryingly low.
The Office for National Statistics forecasts there were 370,000 vacancies in May to July, up 10% from the record low in April to June 2020.
The increase was driven by small businesses( less than 50 hires ), some of which reported taking on staff to meet coronavirus( COVID-1 9) guidelines.
7.56 am BST
BCC Head of Economics Suren Thiru fears that more works will lose their jobs as the government’s job retention scheme jazzs up in October:
“While the headline data continues to lag behind the reality on the sand, the decline in the number of hires on payrolls and hours worked is further evidence of the damage being done to the UK labour market by the Coronavirus pandemic.
“The furlough strategy has successfully completed in preserve millions of jobs. However, with houses continuing to face a excellent gale of increase in costs, reduced necessitate, and lessened cash reserves, unemployment is likely to surge as the government support intrigues wind down, unless action is taken.
7.46 am BST
These maps, from today’s occupations report, show how the Covid-1 9 pandemic has hurt the UK labor markets 😛 TAGEND
7.39 am BST
Here’s ONS deputy national statistician for economic statistics Jonathan Athow on today’s hassles report 😛 TAGEND
“The labour market continues rising trend, with a fall in employment and significantly reduced working hours as numerous beings are furloughed.
Figures from our main survey show there has been a rise in parties without a enterprise and not looking forward to one, though wanting to work. In addition, there are still a large number of people who say they are working no hours and going zero pay.
7.35 am BST
Average payments have precipitated across the UK economy, due to a slump in bonuses and the impact of the government’s furlough scheme.
The ONS reports that regular spend( excluding bonuses) shrank by 0.2% in the April-June quarter, while total money( including bonuses) declined by 1.2%.
Employee pay growth slumped further in June following tumbles in April and May; increment has been affected by lower pay for furloughed employees since March, and abbreviated bonuses; nominal regular compensate expansion for April to June 2020 is negative for the first time since records had been launched in 2001.
Single-month growth in average weekly earnings for June 2020 was negative 1.5% for total money and negative 0.3% for regular pay.
For the sectors of wholesaling, retailing, inns and diners, and interpretation, where the highest percentage of employees returned to work from furlough, there is a slight improvement in pay growth for June 2020 compared with April and May; weaker remunerate increment in some higher-paying areas negates this at whole economy level.
7.18 am BST
Good morning, and welcome to our wheel coverage of the world economy, the financial markets, the eurozone and business.
The number of beings in employment in Britain has descended again, as the coronavirus pandemic impels companies to cut jobs.
Survey data establish employment is weakening and unemployment is largely unchanged because of increases in economic inactivity, with parties out of work but not currently looking for work.
The decrease in employment on the quarter was the largest quarterly decrease since May to July 2009 with both men and women reading increases on the one-quarter. The quarterly decrease in employment was also driven by workers aged 65 years and over, the self-employed and part-time craftsmen. Meanwhile full-time works primarily offset the decrease.
The shadows of uncertainly are starting to part, and a light of optimism is breaking through that additions to the US stimulus pack are looking more promising as both sides are set to rejoin the negotiating table.
It seems that Trump’s executive tells have indeed put pressure on Congress to agree to a broader monetary packet and to at all cost to avoid the political backlash and get the deal done before executive order deadlines around the end of the month expire. I believe the last thing Congress wants to do is deal with another cliff-edge scenario during an election year as countless votes are probably journeying on this carton.
Global inventories in Risk On mood w/ Asia equities advancement most in a week after positive handover from Wall St: S& P 500 near pre-pandemic high-pitched. Alliances steady w/ US 10 y at 0.58%. Dollar a tad weaker w/ Euro at $1.1750. Gold weaker at $2,014. Bitcoin at $11.8 k. pic.twitter.com/ aPxoeFQ9yg
Read more: theguardian.com
Recent Comments