Job loss announcements pile up

The fall in output (GDP) continued last month, while job loss announcements piled up, making future rises in unemployment inevitable.

That’s still not showing in the unemployment rate (now at 3.9%). But by June 2020, the number of employees on UK payrolls was down by around 650,000 compared with March. The Office for National Statistics reported a record decrease in total weekly hours worked and a rise in economic inactivity.

The first-quarter fall in output, 2.2%, was worse than previously estimated, while household consumption fell by 2.9%.

These figures pre-date the fall in average weekly earnings in April and May.

Average total pay has declined and is now 1.2% down on the year.

This includes bonuses which fell by an average of 14.5% in the three months March-May 2020.

The fall in regular pay in the same period was 0.2%.

So far the public sector has ridden out that particular trend, with average weekly earnings rising by 4.8%.

Most public sector employers were told they weren’t expected to use the furlough scheme which is capped at 80% of pay or £2,500 per month. But some are now beginning to cut jobs.

Changes in workforce composition can affect average earnings, depending on which jobs are cut.

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/july2020