UK employment falls and wages shrink as Covid-19 hits jobs market – business live


Rolling coverage of the latest economic and financial news, as the number of UK workers on payrolls falls by 730,000 since March

  • Payrolls declined again in July
  • ONS: Worst quarter since the financial crisis

7.18am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

The number of people in employment in Britain has fallen again, as the coronavirus pandemic forces companies to cut jobs.

Survey data show employment is weakening and unemployment is largely unchanged because of increases in economic inactivity, with people out of work but not currently looking for work.

The decrease in employment on the quarter was the largest quarterly decrease since May to July 2009 with both men and women seeing decreases on the quarter. The quarterly decrease in employment was also driven by workers aged 65 years and over, the self-employed and part-time workers. Meanwhile full-time employees largely offset the decrease.

The clouds of uncertainly are starting to part, and a ray of optimism is breaking through that additions to the US stimulus package are looking more promising as both sides are set to rejoin the negotiating table.

It seems that Trump’s executive orders have indeed put pressure on Congress to agree to a broader fiscal package and to at all cost to avoid the political backlash and get the deal done before executive order deadlines around the end of the month expire. I suspect the last thing Congress wants to do is deal with another cliff-edge scenario during an election year as many votes are probably riding on this package.

Global stocks in Risk On mood w/Asia equities advance most in a week after positive handover from Wall St: S&P 500 near pre-pandemic high. Bonds steady w/US 10y at 0.58%. Dollar a tad weaker w/Euro at $1.1750. Gold weaker at $2,014. Bitcoin at $11.8k.

Related: Coronavirus live news: Global cases top 20m as WHO chief says ‘it’s never too late to turn outbreak around’

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