Unemployment benefit claims double in Northumberland - with fears figures don't yet reflect severity of crisis

File picture from PA as unemployment benefit claims rise in Northumberland

On March 12, around 10 days before the lockdown started, the number of claimants in the county for either Jobseekers Allowance or Universal Credit was 6,790 – 3.6% of the working-age population.

New figures released on Tuesday, June 16 show that by May 14, this figure had risen to 11,935, or 6.3% of the working-age population, and an increase in the claimant count of 75% in just nine weeks.

Northumberland’s latest claimant count also represents a rise of 6,090 on the previous year.

The other employment figures published today reveal a more mixed picture as they cover the quarter from February to April this year, with economists warning that the full effect may not be felt until the likes of the Coronavirus Job Retention Scheme, which allows staff to be furloughed, ends in October.

In the North East, unemployment stands at 68,000 or 5.2% – a fall of 14,000 over the quarter and 7,000 over the year. This compares to a rate of 3.9% nationally.

Employment in the region stands at 1,245,000 or 73.9% – an increase of 36,000 over the quarter and 45,000 over the year. This compares to a rate of 76.4% nationally.

Jonathan Walker, assistant director of policy at the North East England Chamber of Commerce, said: “The headline labour force statistics show that the regional economy was still in job-creation mode right up to point when Covid-19 hit. These numbers do not yet fully show how severe the impact of the current crisis has been on our labour market.

“Government support such as the furlough scheme has helped to stave off many major job losses for the time being, but the fact that May’s claimant count is 77% higher than this time last year shows the scale of the challenge we are likely to face.

“The North East continues to have the highest unemployment rate in the country. We know this crisis and any recession will be felt more strongly in regions such as ours. The promise of levelling up that brought the Government to power must be honoured in any economic recovery plans.”

Earlier in June, we reported that the total number of employments furloughed in Northumberland, from the start of the scheme up to the end of May, was 33,800, while the UK’s economy shrank by 20.4% in April, a GDP fall three times greater than that experienced during the 2008-9 economic crisis.

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