Number of Brits on furlough falls by 1m as lockdown eases
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The number of UK workers on furlough fell by more than 1m this month following the first easing of Covid-19 lockdown measures.
Official figures published today showed the proportion of the workforce on furlough dropped from 17 per cent to 13 per cent as of 18 April.
This equates to roughly 4.3m workers on furlough compared to 5.6m previously, according to previous estimates by the Office for National Statistics.
The figures reflect the positive impact of the reopening of the economy on 12 April, when England entered the first step of the government’s roadmap for easing lockdown.
This enabled non-essential retail, hairdressers and gyms to reopen, while outdoor service is now permitted at pubs and restaurants.
The data also marks a sharp improvement on a peak in mid-March when 19 per cent of the UK workforce was on furlough — equivalent to 6m people.
The furlough rate is now close to the 11 per cent recorded in early December following the easing of a month-long national lockdown.
The trend is set to continue as lockdown easing continues. From 17 May museums, theatres and cinemas are set to reopen, while hospitality venues will be allowed to offer indoor service.
It comes a week before the Bank of England is set to make its latest interest rates decision, which is likely to signal expectations for the UK’s economic recovery.
“Monetary policy expectations have come a long way since the start of the year, when negative interest rates were considered a serious possibility,” said Laith Khalaf, financial analyst at AJ Bell.
“Negative rates are now dead before arrival, thanks to the successful vaccine roll-out, and the Bank’s preparations to allow for sub-zero rates by August look like a purely academic exercise.
“Since the interest rate committee last met in March, shops, cafés and restaurants have opened, and a further 7m people have received their first vaccine dose. As the economy opens up, markets will increasingly ponder when the Bank of England will dare to raise rates again.”