Analysis of new labour market data from the ONS shows the scale of the economic challenge facing the south east as claimants for Universal Credit and other unemployment benefits rose by 178.12% to 325,199.
Although an imperfect measure of unemployment, these figures show a severely strained jobs market and an urgent need for a Back to Work Budget.
The Government has reportedly postponed its next full budget until autumn, raising concerns a slow and muddled health response is now being followed by a slow and muddled response to saving jobs.
Meanwhile, figures released by the Government show 23.38 % of the workforce are furloughed in the South East whilst 352,000 of the workforce are using the Self-employed Income Support Scheme.
Vacancies also fell by 60% across the UK between February and May, with steeper falls in some sectors. This includes:
- 80% fall in construction, employing 5.3% of workers in South East
- 94% and 70% falls in motor trades and retail, employing around 16.7% of workers in the South East
- 94% fall in accommodation and food services, employing 7.3% of workers in South East
- 85% in arts, entertainment and recreation, employing 2.5% of workers in the South East
Figures reveal that:
- There were 325,199 people claiming universal credit and other unemployment benefits in the South East in May 2020, up 178.12% from February
- This is equivalent to around 6.7% of the workforce
- 23.38% of the workforce are furloughed, whilst 352,000 are using the Self-Employed Income Support Scheme.
Portsmouth South’s Stephen Morgan MP said:
“These figures show the Government cannot afford to delay its next full budget until after the summer and must urgently bring forward a Back to Work Budget to protect jobs and livelihoods here in Portsmouth and across our region.
The government must also ensure the vital support provided by the JRS and SEISS are not withdrawn too soon, and that any withdrawal is tailored to the specific needs of firms and sectors in our city and for the south east.”
