Coronavirus chaos: The bleak stat which highlights pandemic’s devastating economic impact

Coronavirus chaos: The bleak stat which highlights pandemic’s devastating economic impact

Different regions are experiencing very different economic challenges, according to figures laid out by the Institute for Employment Studies (IES). These included Broxtowe (East Midlands), Rhondda Dynon Taff (Wales), Telford and Wrekin (West Midlands) and Pendle (North West).

“This crisis has affected all parts of the economy, but it’s clear that it is hitting some places harder than others,” said IES director Tony Wilson.

“Many of these areas were struggling before this crisis began and are in even more trouble now.”

On the other hand, many districts fared better.

These include mostly towns and cities in the East, South East and South West, but also Warwick and Stafford in the West Midlands, and Westminster, the City of London and Kensington and Chelsea.

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The ratio of unemployed benefits claimants to vacancies was lowest in cosmopolitan inner London boroughs, business and university towns and cities, and affluent areas in the East and South East.

Despite this, London cosmopolitan areas experienced the largest rise in the unemployment to vacancy ratio in the last month, almost trebling from 0.7 in April to 2 in May.

This week it was revealed that job centre claimants had risen by 126 percent under lockdown, as 600,000 new people have joined the ranks of the unemployed in May, according to the ONS.

It’s not all bad news though. The number of job vacancies is rising.

This week Rishi Sunak has laid out his plan for dialling back the furlough scheme, as the government makes moves to get people back to work.

He said that he plans to “wean” the “addicted” nation off the furlough scheme.

This will involve gradually upping employers contributions to employees’ salaries and allowing people to go back to work on a part-time basis.

By October, the government will pay 60 percent of wages up to £1,875, with employers topping that number up to 80 percent, as well as pensions and national insurance.

Published at Fri, 19 Jun 2020 10:28:00 +0000