Benefit claims soared by 69% last month as coronavirus ripped through the UK, official figures revealed.
The number of Universal Credit claimants surged by 856,000 to 2.1 million across Britain in April, compared with the previous month.
It’s the latest sign of the massive impact on jobs and livelihoods, despite state intervention through an emergency wage protection scheme known as furlough.
Jonathan Athow, from the Office of National Statistics, 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.”
UK Work and Pensions Secretary Therese Coffey said the government is focusing on Universal Credit claimants, ahead of the full unemployment picture.
Unemployment increased by 50,000 to 1.35 million in the three months to March, before the impact of lockdown was known.
In Scotland, the latest figures today show the unemployment rate was 4.1%, slightly higher than the 3.9% recorded for the UK as a whole.
Jamie Hepburn, the Scottish Government’s Business, Fair Work and Skills Minister, said: “While these rates compare well against historical records, they do not reflect fully the unprecedented impact of the pandemic and how it will change over time.
“The Job Retention Scheme will have offered some relief to many employers and employees, but I am aware many will be deeply concerned about the future of their livelihoods.”
The first case north of coronavirus in Scotland was confirmed on March 1 while businesses deemed non-essential were encouraged to close from March 16.
But it was not until a week later on March 23 that the full lockdown was introduced.
