U.K. Employment Suffers Virus Knock After Lockdown Eases

U.K. employment took a hit even after the government started to lift restrictions to control the coronavirus as companies stepped up job cuts.

The number of redundancies stood at 227,000 in the June-August period -- the most since 2009, the Office for National Statistics said Tuesday. Employment fell by 153,000, almost five times the level estimated by economists, and the unemployment rate rose to 4.5%, the highest since 2017.

The numbers may have been impacted by revisions due to data-collection problems caused by the need to avoid close contact.

Jobs Hit

Redundancies have surged in the U.K. in recent months

Source: Office for National Statistics

With many more job losses expected in the coming months as state support is scaled back, the figures will raise pressure on the government and the Bank of England to do more to support the economy.

在非农员工在九月数为向下从三月，ONS 673000说。

雇主击中由大流行将看到下岗工人工资补贴本月结束。很少有人认为它的替代或新宣布支持受当地lockdowns公司将足以避免大规模失业，有些预测的失业率可能会超过300万 - 80年代以来从未见过的水平。

病毒的影响

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The pound was little changed after the report.

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The number of employees on payrolls in September was down 673,000 from March, the ONS said.

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Employers hit by the pandemic will see wage subsidies for furloughed workers end this month. Few think its replacement or newly announced support for firms affected by local lockdowns will be enough to avert mass job losses, with some predicting unemployment could surpass 3 million – levels not seen since the 1980s.

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Virus Impact

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U.K. employment has fallen by almost half a million since February

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Source: Office for National Statistics

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“What were seeing today is the effect of the tapering of the furlough scheme,” Josie Dent, an economist at the Centre for Economics and Business Research, said in a Bloomberg Television interview. “August was the first month where employers had to contribute significantly and that will have meant, unfortunately for many, those costs just rose too high.”

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Chancellor of the Exchequer Rishi Sunaks efforts to keep Britons in work come too late for many people. Firms from brewer Greene King to bank TSB have announced thousands of cuts in recent weeks.

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— With assistance by Eileen Gbagbo, and Lucy Meakin

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(Updates with more detail from fourth paragraph)