The number of people on furlough has fallen to the lowest level
since the start of the pandemic as the UK economy continues to
rebound and businesses reopen, according to new statistics.
Figures published today show the number of people on the
Coronavirus Job Retention Scheme in July stood at 1.6 million –
down 340,000 from almost two million at the end of June and a
peak of nearly nine million at the height of the pandemic in
May last year.
The figures also show a striking fall in the number of young
people on furlough, showing that our Plan for Jobs is
continuing to support young people back into work. A total of
121,600 people between the ages of 18-34 came off the CJRS
during the months of June and July.
Chancellor of the Exchequer said:
“It’s fantastic to see furlough levels at their lowest
since the start of the pandemic with young people in particular
getting back to work and kickstarting their careers as the UK
gets back to business.
“With furlough naturally unwinding and coming to a close at
the end of the month we are doubling down on our Plan for Jobs
- focusing our support on giving people the skills and
opportunities they need to succeed in the jobs of
tomorrow.”
The number of people on furlough in the arts, entertainment and
recreation sector, as well as accommodation and food services
have seen particularly large reductions in the number of jobs
on furlough over the course of the summer, with numbers
furloughed from these sectors declining by 26,200 and 96,700 in
July respectively.
The latest statistics for the Self Employment Income Support
Scheme show a consistent fall in demand since the beginning of
the scheme. Across all five grants, 9.9 million claims have
been made and more than £27 billion has been claimed by almost
three million people.
The furlough scheme has protected nearly 12 million jobs over
the last 18 months, with nearly 2 million fewer people now
expected to be out of work than was previously feared. Last
summer, the OBR forecast that the unemployment rate would reach
nearly 12%, but they now think it will peak at just over half
that number. The scheme is naturally unwinding as the economy
rebounds and businesses reopen and will come to a close at the
end of this month.
This comes after the announcement of a Government-backed
insurance scheme for the live events sector, which will help
them plan events with confidence through to next year, and
boost a sector that supports more than 700,000 jobs.
In another positive sign for the economy and jobs, the latest
Insolvency Service figures also show that fewer potential
redundancies were notified in August than any other month in
2020-2021.
Furlough was the right thing to do at the height of the
pandemic, when necessary health restrictions were in place –
this way we were able to protect lives and livelihoods. As the
economy reopens and businesses trade again its right that
employees can get back to work. The Government is doubling down
on its Plan for Jobs as the UK economy rebounds - focusing our
support on giving people the skills and opportunities they need
to succeed in the jobs of tomorrow through schemes including
Kickstart, Restart and apprenticeships.
