UK unemployment increased by 50,000 to 1.35million in the three months to March, latest Government figures show.
The Office for National Statistics said Britain's unemployment rate fell to 3.9% in the January-March period, covering only one week of the lockdown, from 4.0% in the three months to February.
Early estimates for April 2020 also indicate that the number of paid employees has fallen 1.6%, as firms start to feel a greater impact from the lockdown.
Jonathan Athow, deputy national statistician for economic statistics at the ONS, said: "While only covering the first weeks of restrictions, our figures show Covid-19 is having a major impact on the labour market.
"In March employment held up well, as furloughed workers still count as employed, but hours worked fell sharply in late March, especially in sectors such as hospitality and construction.
"Through April, though, there were signs of falling employment as real-time tax data show the number of employees on companies' payrolls fell noticeably, and vacancies were sharply down too, with hospitality again falling steepest."
The number of people claiming unemployment benefits in Britain also soared to 2.1million in April, according to the report.
The claimant count rose by 856,500 to 2.097 million, the Office for National Statistics said.
Economist Sir Christopher Pissarides warned hours of work figures "fell catastrophically" while vacancies figures showed the labour market "more or less stopped functioning".
The London School of Economic academic told BBC Radio 4's Today programme employment figures are "not as bad", but added: "Hours of work figures fell catastrophically.
"And also vacancies fell which shows the labour market more or less stopped functioning at the beginning of the lockdown."
Thomas Lawson, chief executive at charity Turn2us, called for more aid for those at risk of "slipping through the net".
"This sudden increase in unemployment as a result of coronavirus is, while not surprising, a significant cause for concern," he said.
"There were already 14million of us living in poverty before the pandemic and this is only going to get worse as more and more people lose their incomes and struggle to get by. This is why it’s so important that the government responds with practical solutions that reach everyone and prevent people from slipping through the net – living with no source of income.
"We have heard from hundreds of thousands newly unemployed people who have already spent their savings and now face hunger, homelessness and debt. The surge in applications for Universal Credit also highlights the crisis many are now living. Unfortunately our social security system is not fit for purpose. This is a significant worry as the recession following coronavirus extends into the summer months and beyond.
"We strongly urge the government to expand their employee and self-employed income protection schemes to help the thousands currently ineligible, such as the newly self-employed who are missing out. The DWP must also fix Universal Credit by ending the five week wait; increasing the work allowance and eliminating policies such as the two child limit.
"It’s imperative that our government provides those in our families and communities with the cushion they need, when they need it. And, that’s now."
