- The UK unemployment rate rose 4.1% in July to a two-year high as nearly 750,000 jobs have been lost since March this year.
- The number of employees has fallen by 695,000 since March. D.Despite the three months until July that easing restrictions were relaxed.
- The number of applicants has increased by 120.8% since March and reached 2.7 million in August.
- Recent data may not reflect the true extent of job losses in the UK as "the figures still do not include those who have not yet returned to work from vacation and as such are not yet classified as unemployed," said one chief -Market analyst said.
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The coronavirus pandemic cost 750,000 people their jobs in the UK between March and August and increased the unemployment rate to over 4% for the first time since October 2018 Data published Tuesday by the national statistics agency.
The number of paid employees fell by around 695,000 in the five months to August, according to the Bureau of National Statistics. This reflects the largest annual increase since 2009.
The UK unemployment rate rose to a two-year high of 4.1% in August from 3.9% in the previous three-month period.
Estimates for May to July put 32.98 million people 16 and over in employment. That number is 202,000 higher than a year ago, but 12,000 less than the previous quarter.
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The number of applicants – those applying for universal loans and unemployment benefits – rose 120.8% since March to 2.7 million in August.
Employee pay growth slowed in July after sharp declines over the past three months, mainly weighed down by lower wages for workers on leave and reduced bonuses.
With some employees resuming their normal work, the nominal salary, which excludes the effects of inflation, became positive between May and July after having been negative for the previous three months.
The latest economic data "could well add some color to the extent of the economic pain the coronavirus pandemic has inflicted on the UK economy." said Michael Hewson, Chief Market Analyst at CMC Markets.
In addition, ONS data may not reflect the true extent of job loss in the UK. Although the overall unemployment rate rose to 4.1%, "the numbers still do not include those who have not yet returned to work from vacation and as such are not yet classified as unemployed," Hewson said.
On the positive side, at least two thirds of employees on leave are now back to work. However, the last 2 million or so people could find they don't have a job to return to if the current social distancing guidelines persist for the next year, and the current vacation program, which is slated to end next month, doesn't continue .
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