This archive report was first published on 16 June 2020.
On June 16, 2020, the UK witnessed a significant surge in jobless claims, with official data showing a 126 percent increase to 2.8 million people in the three months to May.
The surge in claims coincided with a strict nationwide lockdown imposed on March 23, which shut shops and businesses, and a 'furlough' jobs retention scheme launched by the UK government.
Despite the lockdown restrictions being eased this month, furloughing continues, with 9.1 million people being paid via the furlough scheme, according to the UK Treasury.
Economists argue that the full extent of the coronavirus impact will not be clear until the costly furlough scheme ends in October, and companies will have to start contributing from August.
City Index economist Fiona Cincotta warned that the government's furlough scheme is massaging the numbers, and that the UK unemployment rate will surge once the scheme ends.
