adminThe number of Britons seeking jobless benefits spiked the most on record last month as the coronavirus lockdown sent shock waves through the UK economy.
Jobless claims rose 856 500 to more than 2 million in April, the Office for National Statistics said yesterday. The claimant count rate climbed to 5,8 percent, the highest in more than two decades. The figures include some people who are still working but have experienced a loss of earnings.
The shut-down of the economy since March 23 is taking a heavy toll, pushing the UK into what could be its deepest recession for three centuries. While unemployment is forecast to rise, the government’s furlough program has saved about 7,5 million jobs, limiting the damage to the labour market.
In a further move to support Britain’s beleaguered businesses, the Treasury announced yesterday that it extended the maximum loan size available through the Coronavirus Large Business Interruption Loan Scheme to £200 million – a fourfold increase from the previous level.
Meanwhile, hours worked fell 25 percent in the final week of March, the most since weekly data began in 2008, and tax data for April showed paid employees fell 1,6 percent from a month earlier.
Both the Office for Budget Responsibility and the Bank of England see unemployment more than doubling to around 10 percent by June, the highest for over a quarter century. – Reuters.
Online Reporter