Three Million Jobs Idled in Virus-Hit U.K. Retail, Hospitality
Three Million Jobs Idled in Virus-Hit U.K. Retail, Hospitality
(Bloomberg) --
U.K. retailers, hotels and restaurants sought the most money from the government in wage subsidies, according to figures Thursday that lay bare the scale of disruption inflicted by the coronavirus lockdown.
Retail and wholesale firms furloughed more than 1.6 million staff through May 31, at a cost of 3.3 billion pounds ($4.2 billion), data from the U.K. tax authority show. Accommodation and food services saw 1.4 million jobs furloughed, costing about 2.6 billion pounds. Together, the two sectors account for over a third of all jobs idled.
The Job Retention Scheme, which pays 80% of a furloughed worker’s wage, is supporting almost 9 million jobs, and will last until October, albeit at a slightly tapered support level. The program has been credited with preventing a mass wave of unemployment in the wake of the coronavirus pandemic, and will carry a final price tag of around 60 billion pounds, according to the government’s fiscal watchdog.
The figures comes as Prime Minister Boris Johnson faces pressure to reopen the economy amid warnings from industry chiefs that as many 3.5 million hospitality jobs are at risk. From June 15, non-essential shops will be allowed to re-open, as well as zoos, safari parks and drive-in cinemas.
On the other hand, scientists are warning of the health dangers of returning to life as normal too soon. With more than 41,000 coronavirus deaths so far, the U.K. has the second-highest toll in the world after the U.S.
The furloughing was spread throughout the country, with London and the Southeast -- the most populous regions -- topping the list with more than 2 million jobs.
Similar data for the self-employed program showed the highest usage came from those in the construction industry, which made around 800,000 claims totaling 2.9 billion pounds, a total of 3,600 pounds per claimant. While London again had the most claims, it also had the lowest take-up rate.
SEISS potential eligible population, number and amount of claims by May 31 by gender
| Gender | Total potentially eligible population | Total no. of claims made | Total value of claims made | Average value of claims |
|---|---|---|---|---|
| Male | 2,327,000 | 1,677,000 | £5,358m | £3,200 |
| Female | 1,067,000 | 701,000 | £1,609m | £2,300 |
| Total | 3,397,000 | 2,380,000 | £6,974m | £2,900 |
“Our unprecedented coronavirus support schemes are protecting millions of vital jobs and businesses across the whole of the United Kingdom, and will help ensure we recover from this outbreak as swiftly as possible,” Chancellor of the Exchequer Rishi Sunak said in a statement.
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