UK hiring plummets as Covid-19 crisis hits low-income workers
UK job vacancies crashed almost 60 per cent this month as the coronavirus pandemic sparked the country’s fastest rise in unemployment since 1947, new data has revealed.
Live job vacancies have dropped from 820,000 at the beginning of April to just 373,000 in May as fears of a protracted economic downturn grow.
The figures, released by the Office for National Statistics (ONS) and job search engine Adzuna, showed low-income workers have been hardest hit by the crisis, with 64 per cent of job losses hitting workers earning between £15,000 and £25,000.
The disparity reflects the disproportionate impact of the Covid-19 sector on the hospitality, catering and retail sectors.
Hospitality and catering lost 86 per cent of all jobs across the UK as cafes, bars and restaurants were forced to shut up shop. Retail positions also plunged by 70 per cent.
A sharp downturn in travel has also taken its toll on the travel industry, which has seen a 67 per cent decline in jobs since March.
It comes after Easyjet this morning said it would slash almost a third of its workforce, while British Airways has previously announced it will cut 12,000 jobs.
There were signs of recovery in some sectors thanks to the gradual reopening of construction sites and the planned reopening of non-essential shops next month.
However, the report warned recovery was likely to be slow as employers cautiously re-enter the market.
Broken down by region, London suffered the sharpest fall in hiring activity with jobs down 64 per cent.
London is disproportionately affected by the drop in hospitality jobs, with the capital accounting for a fifth of all vacancies in the sector nationwide.
The West Midlands suffered the second largest reduction in jobs — falling 63 per cent — while Yorkshire and Humber was close behind with a 62 per cent decline.
Unemployment is expected to rise significantly when the next set of data is released after 2.1m claimed Universal Credit in April — an increase of 70 per cent.
Prime Minister Boris Johnson yesterday said it was “very likely” that the government would launch some form of post-coronavirus jobs programme.
Andrew Hunter, co-founder of Adzuna, said: “The direct impact of Covid-19 has had on sectors such as hospitality and retail has been catastrophic and is likely to take some time to recover.
“I’m given some solace by the fact that in the last 2-3 weeks, the analysis suggests hiring looks to be turning a corner and returning to growth, albeit from a low base.”