MNI DATA IMPACT: UK Sheds Jobs In May; Govt Schemes Limit Loss

--HMRC Payroll Data Show Deceleration In Layoffs

By Laurie Laird

     LONDON (MNI) - The UK continued to shed jobs in May and June, albeit at a

decelerating pace, but the government support schemes have distorted recent

labour data, obscuring the true picture of employment in the country.

     The following are the main points from the most recent employment report

released on Thursday by the Office for National Statistics.

     - Paid employment, as measured by data provided by HMRC, declined by 74,000

between May and June, far smaller than the 124,000 jobs lost in May and the

450,000 cut in April.

     - According to the Labour Force Survey, employment fell by 126,000 in the

three months to May, the biggest fall since the third quarter of 2011. That left

the LFS unemployment rate at a historical low of 3.9%, largely due to a

statistical quirk. The LFS survey noted that approximately 500,000 workers who

are neither working nor on furloughed schemes considering themselves to be away

from work rather than unemployed, pushing up the jobless rate.

     - Self employed workers have been hardest hit by the economic lockdown,

with a record-high 178,000 losing their jobs over the three months to May,

compared to the three months to February. That leaves the self-employment rate

at 14.7% of the work force, down from a record-high of 15.3% earlier this year.

A National Statistics official was unable to comment on whether the fall in

self-employment reflects reports of difficulty in accessing support schemes for

self-employed workers.

     - Vacancies fell by a record-high 463,000 in the three months to June to a

record-low 333,000. However, Adzuna data tracked by the ONS show a "a very small

increase" in openings in June, according to an ONS official. Earlier Thursday,

James Reed, chairman of the UK's largest employment agency, told the BBC job

vacancies rose 9% m/m in June.

     - Hours worked slumped to a record-low 26.6 per week in the three months to

May.

     - Total pay fell by 0.3% in the three months to May, the biggest decline

since the three months to April of 2009. Excluding bonuses, pay rose by an

annual rate of 0.7%, the smallest increase since July of 2014. Adjusted for

inflation, real total earnings slumped by an annual rate of 1.3%, the biggest

fall since the three months to July of 2014.

     - Thursday's data do not reflect the announcement of thousands of retail

and hospitality job losses announced since the beginning of the month, raising

fears that the official unemployment rate could rise quickly once the government

furlough scheme expires in October.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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