UK sees record drop in employment since 2009
Britain reported its biggest drop in the number of employed individuals as a sign that the COVID-19 pandemic could take a heavier toll on the labor market after the government eases its job-protection scheme.
Figures released on Tuesday showed that the number of people in employment fell by 220,000 people from a three-month period through June. A separate tax data for July showed a decrease of 730,000 in staff on company payrolls since March.
Falling employment numbers have been expected as Britain eases its job-retention scheme, which is due to end late October.
However, the U.K.’s unemployment rate held steadily at 3.9%, reflecting that there were more people who gave up looking for work and are considered unemployed.
An economist poll by Reuters sees the unemployment rate to jump to 4.2%.
The Bank of England expects the unemployment rate to reach 7.5% by the end of 2020.