CORONAVIRUS JOB RETENTION SCHEME - Labour Market Briefing - CJRS Update May 2021 - Cumbria County Council
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Labour Market Briefing - CJRS Update May 2021 CORONAVIRUS JOB RETENTION SCHEME Coronavirus Job Retention Scheme (CJRS) – next update due 3rd June 2021 On 6th May HMRC released updated statistics on the Coronavirus Job Retention Scheme (CJRS) which provides support to employers who have been unable to undertake their normal activities through the COVID-19 period. Please note that this data supersedes all previous data released. Important methodological notes: An employer is defined as a Pay As You Earn (PAYE) Scheme. Some organisations operate multiple payrolls and in other situations, a group of companies may pool their payrolls together under one PAYE scheme. This means the employer count does not match other published data on the business base. An employment is defined as anyone who meets the scheme criteria set out within the published guidance. If an employee has jobs with more than one employer and has also been furloughed from each job, they will be counted in these statistics once for each employment that has been furloughed. The employment is assigned geographically to the residential address of the employee which may not be the location of the job. In the monthly data, where an employee is furloughed for more than one claim period they will be counted in each month’s data. In the cumulative data, each unique job is counted only once. Key national findings (these data are for claims to end March) The key points from this release covering the period to 31 March 2021 are below. Figures for March 2021 are provisional and subject to revision as additional claims for the period are received. • provisional figures show there has been a decrease in levels of furlough between February and March 2021 with 4.2 million employments on furlough at 31 March 2021 • since the start of the scheme a cumulative total of 11.5 million jobs have been supported by the CJRS at various times. This is across all claims submitted to HMRC by 14 April 2021 • the levels of furlough seen in these figures reflect the changes to restrictions on individuals, households and businesses across the UK since the autumn • at 28 February, 41% of employers had staff on furlough. Provisional estimates show that this decreased to 39% of employers at 31 March 2021. 16% of employments eligible for furlough were on furlough at 28 February. Provisional estimates show this decreased to 14% at 31 March 2021 • provisional figures show that all sectors saw a reduction in levels of furlough between 28 February and 31 March 2021 • the accommodation and food services sector had the highest take-up rate at 28 February at 70% of eligible employers putting staff on furlough. Provisional estimates show this decreased to 67% of employers at 31 March 2021. 1.19 million employments were on furlough in this sector on 28 February, with provisional figures showing this decreased to 1.06 million on 31 March 2021 • staff on furlough in the wholesale and retail sector peaked on 24 April at 1.85 million employments on furlough. Latest figures show the number of employments on furlough decreased to 826,000 employments on furlough at 31 March 2021 from 933,000 at 28 February • a more detailed breakdown of furlough rates by detailed industry groups shows the beverage serving activities sector had the highest proportion of eligible employments on furlough at 28 February, with a take-up rate of 92%. Provisional figures show this decreased to 78% on 31 March 2021 • this was followed by the hotels and similar accommodation sector which had 75% of its eligible employments on furlough at 28 February. Provisional figures for 31 March 2021 show this decreased to 70% • the ten industry groups with the highest take up rates at 31 March 2021 are passenger air transport, hotels and similar accommodation, holiday and short-stay accommodation, beverage serving activities, photographic activities, travel agency and tour operator activities, gambling and betting activities, sports activities, amusement and recreation activities, and other personal service activities Page 1 of 8
Labour Market Briefing - CJRS Update May 2021 • the restaurants and mobile food service activities sector had the highest number of employments on furlough at 28 February with 447,000 employments on furlough. Provisional figures show this sector had 410,000 employments on furlough at 31 March 2021 • in the passenger air transport sector, there were 200 employers (62% of employers eligible) with 36,000 employments (57% of eligible employments) on furlough at 28 February. At 31 March 2021, provisional figures show this remained similar with 35,000 employments on furlough • medium and large sized employers have the lowest take up rates. Provisional figures for 31 March 2021 show that employers with 250 or more employees have 8% of eligible employees on furlough in comparison with the average 14%. Employers with 2 to 4 employees had the highest proportion of eligible employees on furlough at 34% • across the UK, where it was possible to link the data, 2.37 million females were on furlough at 28 February compared with 2.17 million males. Provisional estimates show a decrease with 2.12 million females on furlough at 31 March 2021 and 1.95 million males • there was broad consistency in furlough rates across the nations and regions of the UK at the end of February with London having the highest take-up rate of 18% against the UK average of 16%. Provisional estimates show that this was also true at the end of March 2021 with London having the highest take-up rate at 16% against a UK average of 14% • the ten local authorities with the highest take up rates at 31 March 2021 are Eden and South Lakeland in Cumbria, Scarborough, Isle of Wight, Crawley and the London authorities of Brent, Ealing Haringey, Hounslow and Newham • the under 18 age band had the highest take up rate for both female and males at 28 February, 41% and 30% respectively. Provisional estimates for 31 March 2021 show that the under 18 age band continued to have the highest take-up rates at 38% for females and 28% for males. Employees aged 18 to 24 and 65 and over were also more likely than average to be on furlough • 1.29 million employments were on partial furlough at 28 February, 27% of the total employments on furlough. Provisional estimates show this figure decreased to 1.22 million employments on partial furlough at 31 March 2021, 29% of the total employments on furlough Key local findings (these data are for claims to end March) • Provisional figures show there has been a decrease of 4,000 in the level of furlough in Cumbria between February and March 2021 with 36,700 employments on furlough at 31 March 2021. • This is a 10% decline in furloughing which is below the UK fall of 12% but similar to the England fall of 10%. Furloughing fell faster than nationally in Carlisle (-13%) but fell more slowly elsewhere with Allerdale and Copeland showing the smallest percentage falls (both -8%). • Since the start of the scheme a cumulative total of 92,500 jobs held by Cumbrian residents have been supported by the CJRS at various times, 42% of all eligible jobs. • Provisional estimates show that in March, 17% of employments eligible for furlough in Cumbria were on furlough the end of March, down from 19% in February. • The furlough rate in Cumbria in March was the highest among 31 county areas in England. • Allerdale, Eden and South Lakeland had furlough rates above the UK average with South Lakeland’s rate of 24% being the highest of any district area in England and Eden’s rate of 21% being the 3rd highest. Barrow and Copeland meanwhile continue to have furlough rates below the national average while Carlisle’s is similar. • The sector with the highest number of furloughs in Cumbria in March was accommodation & food services with 13,360 followed by wholesale & retail with 7,070. • Furloughing fell in all sectors in Cumbria between February and March with the biggest numerical declines in wholesale & retail (-810) and accommodation & food services (-800). Proportionately this represented falls of 10% and 6% in these two sectors which in both cases was less than seen nationally. Page 2 of 8
Labour Market Briefing - CJRS Update May 2021 Cumbria furlough count The number of furloughed employments fell by 4,000 in Cumbria according to the provisional March data, from 40,700 to 36,700. This is a fall of 10% similar to the England fall of 10% but lower than the UK fall of 12%. Carlisle was the only part of Cumbria where the % fall in furloughing was bigger than the UK average (-13%). Allerdale and Copeland had the smallest percentage falls (both -8%). Figure 1: Furlough count by month, national and local South UK England Cumbria Allerdale Barrow Carlisle Copeland Eden Lakeland Jul-20 5,393,100 4,234,200 37,800 7,100 3,500 8,800 4,000 4,700 9,700 Aug-20 3,810,900 3,092,700 25,600 4,500 2,300 6,700 2,600 3,000 6,500 Sep-20 2,843,400 2,328,900 18,200 3,400 1,700 4,300 1,900 2,200 4,800 Oct-20 2,399,600 1,897,400 14,300 2,700 1,500 3,300 1,400 1,700 3,800 Nov-20 3,868,200 3,209,500 33,600 6,700 2,900 6,600 3,100 4,300 10,000 Dec-20 3,975,100 3,186,200 30,600 6,000 2,800 6,000 2,800 3,800 9,200 Jan-21 4,883,500 3,886,900 42,600 8,400 3,600 9,300 3,800 5,400 12,000 Feb-21 (r) 4,746,000 3,803,700 40,700 8,000 3,500 8,300 3,800 5,300 11,800 Mar 21 (p) 4,193,900 3,406,300 36,700 7,400 3,200 7,200 3,500 4,800 10,600 Monthly chg -552,100 -397,400 -4,000 -600 -300 -1,100 -300 -500 -1,200 Monthly % chg -12% -10% -10% -8% -9% -13% -8% -9% -10% Source: HMRC (r = revised, p = provisional) Figure 2: Furlough count by month, Cumbria Furlough count - Cumbria 50,000 42,600 40,700 37,800 36,700 40,000 33,600 30,600 30,000 25,600 Number 18,200 20,000 14,300 10,000 0 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Source: HMRC Since the start of the scheme, 92,500 separate jobs held by Cumbrian residents have been furloughed which means that approximately 42% of eligible jobs have been furloughed at some stage, the highest rate in the country. In South Lakeland 23,700 different jobs held by residents have been furloughed at some stage since the start of the scheme, just over half (53%) of all eligible jobs held by residents in the area. This is the highest rate in the country whilst Eden’s rate of 50% is the 4th highest nationally. Figure 3: Unique furlough count since start of scheme – March 21 Cumulative since start of scheme South UK England Cumbria Allerdale Barrow Carlisle Copeland Eden Lakeland Total to March 21 11,456,400 9,480,800 92,500 18,000 9,000 21,200 9,200 11,500 23,700 Take-up rate 39% 39% 42% 43% 30% 42% 31% 50% 53% Rank 1 24 311 44 309 4 1 Note: Cumbria rank out of 31, district ranks out of 312 (England) Source: HMRC Page 3 of 8
Labour Market Briefing - CJRS Update May 2021 Cumbria furlough rate (% eligible jobs) The furlough take-up rate in Cumbria was 17% in March, down from 19% in February. The furlough rate in Cumbria remains the highest in England. Rates continue to vary between districts – in South Lakeland almost a quarter of eligible employments (24%) were still furloughed at the end of March and a fifth were in Eden (21%) while Barrow’s rate was less than half this at 10%. South Lakeland’s furlough rate remains the highest among district authorities in England but Eden has dropped from 2nd to 3rd highest (replaced by Newham in 2nd place). In contrast, the rates in Barrow and Copeland are among the lowest furlough rates in England (306th and 281st out of 312 respectively). Figure 4: Furlough take-up rate by month, local and national South UK England Cumbria Allerdale Barrow Carlisle Copeland Eden Lakeland Jul-20 18% 17% 17% 16% 11% 17% 13% 20% 21% Aug-20 13% 12% 11% 11% 7% 13% 9% 13% 14% Sep-20 9% 9% 8% 8% 5% 8% 6% 9% 10% Oct-20 8% 7% 6% 6% 5% 6% 5% 7% 8% Nov-20 13% 13% 15% 16% 9% 13% 10% 18% 22% Dec-20 13% 13% 14% 14% 9% 12% 9% 16% 20% Jan-21 16% 15% 19% 20% 12% 18% 13% 23% 26% Feb-21 (r) 16% 16% 19% 19% 11% 16% 13% 23% 26% Mar 21 (p) 14% 14% 17% 18% 10% 14% 12% 21% 24% Monthly ppt chg -2% -2% -2% -1% -1% -2% -1% -2% -3% Mar 21 rank 1 19 306 100 281 3 1 Monthly chg in rank 0 0 3 -11 10 -1 0 Note: Cumbria rank out of 31, district ranks out of 312 (England only), 1= highest furlough rate, fall in rank = improvement Source: HMRC (r = revised, p = provisional) Figure 5: Furlough take-up rates, local and national (graph) Furlough rates 30% 25% UK Cumbria 20% Allerdale 15% Barrow Carlisle 10% Copeland 5% Eden South Lakeland 0% Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar 21 (r) (p) Source: HMRC Page 4 of 8
Labour Market Briefing - CJRS Update May 2021 Furlough by sector HMRC now provide local authority level furlough figures broken down by industry sector. These are only available since January 2021 with no earlier data and no cumulative figures. These data show that of the 36,700 furloughed employments in Cumbria in March, the highest total was in accommodation & food services, 13,360 which is a third of all furloughed jobs in the county. The next biggest furloughing sector was wholesale & retail with 7,070 (a fifth of all furloughed jobs). Figure 6: Number of furloughed employments by sector March 2021 South UK England Cumbria Allerdale Barrow Carlisle Copeland Eden Lakeland Agriculture, mining, utilities 32,360 25,460 430 100 20 80 40 100 90 Manufacturing 273,120 220,080 2,000 450 130 420 130 310 560 Construction 196,470 158,320 1,620 380 140 420 180 170 330 Wholesale & retail 825,580 663,740 7,070 1,490 710 1,630 480 740 2,010 Transportation & storage 176,210 146,400 940 180 50 210 100 130 280 Accomm & food services 1,060,820 835,860 13,360 2,570 990 2,070 1,300 2,170 4,250 Info, comms, finance, property 187,030 159,730 1,060 160 130 230 50 100 400 Professional, scientific tech 243,190 207,220 1,380 240 150 300 180 170 350 Admin & support services 332,730 282,040 2,370 520 260 510 220 240 620 Education 145,590 121,280 970 190 40 150 100 150 340 Health & social work 154,350 124,240 1,170 210 180 240 130 140 260 Arts, ent & recreation 297,960 244,200 2,290 500 250 550 290 180 520 Other service activities 211,670 174,940 1,580 320 120 330 210 130 460 Public admin & other 56,860 42,810 440 80 20 90 50 60 140 Total 4,193,900 3,406,300 36,700 7,400 3,200 7,200 3,500 4,800 10,600 Source: HMRC Figure 7: Furloughed employments by sector, Cumbria – March 2021 Furloughs by sector - Cumbria (number) Agriculture, mining, utilities 430 Manufacturing 2,000 Construction 1,620 Wholesale & retail 7,070 Transportation & storage 940 Accomm & food services 13,360 Info, comms, finance, property 1,060 Professional, scientific tech 1,380 Admin & support services 2,370 Education 970 Health & social work 1,170 Arts, ent & recreation 2,290 Other service activities 1,580 Public admin & other 440 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Source: HMRC Page 5 of 8
Labour Market Briefing - CJRS Update May 2021 The biggest numerical fall in furloughs by sector came in wholesale & retail where there were 810 fewer furlough claims in March than in February. This was followed by accommodation & food services with 800 fewer claims and education where there were 530 fewer. Proportionally, education had the biggest fall in furloughing with 35% fewer in March than in February followed by 20% fewer in transport & storage. Despite the large fall in the number of furloughs in accommodation & food services (-800) this represented only a 6% fall which is a smaller fall than seen in the sector at UK level where furloughing fell by 11%. Figure 8: Change in furloughed employments by sector, Cumbria – Feb-March 2021 Change in furloughed employments - Cumbria (number) Public admin & other -70 Other service activities -100 Arts, ent & recreation -170 Health & social work -210 Education -530 Admin & support services -190 Professional, scientific tech -190 Info, comms, finance, property -140 Accomm & food services -800 Transportation & storage -240 Wholesale & retail -810 Construction -360 Manufacturing -120 Agriculture, mining, utilities -100 -900 -800 -700 -600 -500 -400 -300 -200 -100 0 Source: HMRC Figure 9: % change in furloughed employments by sector, Cumbria – Feb-March 2021 % change in furloughed employments - UK v Cumbria Agriculture, mining, utilities -19% Manufacturing -6% Construction -18% Wholesale & retail -10% Transportation & storage -20% Accomm & food services -6% Info, comms, finance, property -12% Professional, scientific tech -12% Admin & support services -7% Education -35% Health & social work -15% Arts, ent & recreation -7% Other service activities -6% Public admin & other -14% All sectors -10% -40% -35% -30% -25% -20% -15% -10% -5% 0% Source: HMRC Page 6 of 8
Labour Market Briefing - CJRS Update May 2021 HMRC have not provided sector level take-up rates for local areas or provided eligible employment data by sector. There are challenges in constructing rates using other datasets because available employment data includes jobs not eligible for the furlough scheme. In addition it is workplace based whereas furlough data is residence based and therefore commuting patterns have an impact. However, taking those caveats into account, we have used ONS BRES data to construct broad estimates of furlough rates by sector for Cumbria (for the reasons stated, the analysis is too unreliable to present at district level). This suggests that approximately half of all jobs in accommodation & food services were furloughed at the end of March, together with over a third of those in arts, entertainment & recreations and a third of those in other services (which includes activities such as hairdressing etc). Figure 10: Estimated furlough rate by sector, Cumbria – Feb & March 2021 Estimated furlough rate by sector - Cumbria Agriculture, mining, utilities 3% Manufacturing 5% Construction 12% Wholesale & retail 17% Transportation & storage 8% Accomm & food services 47% Info, comms, finance, property 12% Professional, scientific tech 9% Admin & support services 18% Education 6% Health & social work 4% Arts, ent & recreation 35% Other service activities 33% Public admin & other 4% Total 14% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Mar Source: HMRC / BRES / local calculations NB: these are not official rates and should be treated as a guide only Page 7 of 8
Labour Market Briefing - CJRS Update May 2021 Furloughed employments by sector group - Cumbria Agriculture, mining, Manufacturing Construction utilities 4,000 3,000 550 3,070 2,120 600 530 1,980 430 3,000 2,120 1,620 2,000 2,000 400 2,000 200 1,000 1,000 0 0 0 Jan Feb Mar Jan Feb Mar Jan Feb Mar Wholesale & retail Transportation & storage Accomm & food services 14,340 9,000 8,430 1,500 1,260 1,180 14,500 14,160 7,880 940 14,000 8,000 1,000 7,070 13,360 13,500 7,000 500 13,000 6,000 0 12,500 Jan Feb Mar Jan Feb Mar Jan Feb Mar Info, comms, finance, Professional, scientific Admin & support services property tech 2,800 2,690 1,570 1,300 1,200 1,600 1,500 2,560 1,170 2,600 1,200 1,500 1,060 1,380 2,370 1,100 1,400 2,400 1,000 1,300 900 1,200 2,200 Jan Feb Mar Jan Feb Mar Jan Feb Mar Education Health & social work Arts, ent & recreation 1,380 2,000 1,400 2,600 2,490 1,520 1,500 1,290 2,460 1,500 1,300 2,500 970 2,400 1,000 1,170 2,290 1,200 2,300 500 1,100 2,200 0 1,000 2,100 Jan Feb Mar Jan Feb Mar Jan Feb Mar Public admin & other All sectors 550 45,000 42,600 510 40,700 500 40,000 36,700 440 440 450 35,000 400 30,000 Jan Feb Mar Jan Feb Mar Source: HMRC Page 8 of 8
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