Young are worst-hit as jobless total rises
FULL IMPACT OF IS STILL TO BE
COVID-19 CRISIS FELT, WARNS CHAMBER OF COMMERCE CHIEF EXECUTIVE
LATEST employment figures reveal a rise in the number of people out of work – and the situation is likely to get worse.
That is the prediction of a Coventry and Warwickshire business leader who warned: “The full impact of coronavirus on the UK labour market is yet to come.”
The warning came from Louise Bennett, chief executive of Coventry and Warwickshire Chamber of Commerce.
Ms Bennett spoke after it was revealed the unemployment rate rose from 3.9 per cent to 4.1 per cent in the three months to July, with young people being the most affected.
The Office for National Statistics (ONS) said the total number of jobless rose by 62,000 over this period.
Nationally, payroll data showed that almost 700,000 UK workers have been removed from the payrolls of British companies since
March, when the coronavirus lockdown began.
Ms Bennett said: “We know from regional intelligence that once the furlough scheme finishes, we are going to see a further rise in unemployment.
“So the next round of figures are, more than likely, going to get worse before we can hope that they start to get better.
“The Government has introduced the new Kickstart scheme to help young people into the workplace and businesses that want to benefit from that can contact the chamber for support in accessing that programme.
“We also support colleagues at the British Chambers of Commerce in calling for a major cut in employer National Insurance Contributions to reduce the overall cost of employment.”
Local figures for Coventry are complex and relate to Universal Credit, the benefit which has replaced a number of previous benefits.
There are complexities with the analysis of Universal Credit figures but in the four weeks to August 13, the number of people on Universal Credit nationally increased by two per cent to 5.6 million, an 86 per cent increase since March 12 and an increase of 2 per cent from July 9.
In Coventry the latest Universal Credit Alternative Claimant Count figure, which aims to provide an accurate reflection, was 16,307, of which 2,985 were in the 18 to 24 age bracket. The figure represents an increase of 7,757 year on year (1,884 among those aged 18 to 24) and percentage increases year on year of 107 per cent overall and 150 per cent among 18 to 24-year-olds.
Minister for Employment Mims Davies said the Government’s £30 billion Plan for Jobs was “aimed at protecting, supporting and creating jobs”. She said: “Meanwhile, we’re creating hundreds of thousands of fully subsidised new jobs for young people through our £2 billion Kickstart scheme to give those starting out a leg up on to the career ladder and offer them hope for the future.
“And within our jobcentres we are recruiting a further 13,500 work coaches, so all jobseekers throughout the UK have access to tailored support, to build their skills and pivot into new roles.”
The next round of figures are, more than likely, going to get worse before we can hope they start to get better.
Louise Bennett