London is in an unprecedented unemployment crisis even before the furlough scheme ends this weekend, with benefit claimants here rocketing 171% since the Covid-19 crisis, figures showed today.
The furlough scheme will be replaced on Monday by the less generous Job Support Scheme, which is set to throw more people into joblessness.
Analysis of Office for National Statistics data from early March to October shows the claimant count surged in Inner and Outer London by 308,265 over the period to 488,140.
That largely comes on top of the 557,400 Londoners registered as furloughed in the most recent data. Many of those will now be facing redundancy as the scheme ends.
The figures, collated by the Evening Standard, add to pressure on the Government to do more to support struggling industries in lockdown.
A total of 8.1% of Londoners claim unemployment benefits compared with the UK average of 6.5%.
The true unemployment picture will be even worse, because many out of work are not included in the claimant count, which is a mix of old Job Seekers Allowance claims and Universal Credit applicants required to seek jobs.
Layoffs in hospitality, tourism and retail have sent hundreds of thousands of London households into dire straits.
Kate Nicholls, chief executive of UK Hospitality, said: “While the Government’s plan for jobs is a lifeline for many, it is simply not sufficient in central London where many hotels, bars and restaurants are facing trading levels below 10%. We are in danger of losing businesses, not just jobs, the longer this crisis continues.”
The claimant count has surged most in Newham, home of the Westfield Stratford shopping centre. There, the numbers jumped 17,145. Areas like Haringey and Brent have also seen major surges, up 13,440 and 15,190.
The figures were partly so stark because the labour market was strong going into the pandemic.
But the data shows even in areas of already high worklessness, the percentage increase has been unprecedented.
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In Brent, Croydon, Tower Hamlets, Southwark and Newham, where unemployment has always been high, the claimant count more than doubled.
The new JSS scheme replacing the furlough system has been revised to make it more generous but experts say it is still likely to end in more job cuts.
AreaClaimant count increase since MarchCamdenup 6910 to 11065City of Londonup 170 to 255Hackneyup 11535 to 19010Hammersmith & Fulhamup 6100 to 10655Haringeyup 13440 to 20300Islingtonup 7720 to 13390Kensington & Chelseaup 3865 to 6190Lambethup 12655 to 21445Lewishamup 12265 to 20385Newhamup 17145 to 25010Southwarkup 11865 to 20235Tower Hamletsup 12565 to 20620Wandsworthup 9430 to 14,300Westminsterup 6310 to 10130 Outer London Barking and Dagenhamup 8445 to 13970Barnetup 12500 to 18880Bexleyup 5975 to 9185Brentup 15190 to 22575Bromleyup 7760 to 11830Croydonup 13885 to 23415Ealingup 13885 to 23415Greenwichup 10260 to 16360Harrowup 7990 to 11285Havering up 6855 to 10880Hillingdonup 9935 to 14370Hounslowup 10055 to 16450Kingston upon Thamesup 4100 to 6305Mertonup 6530 to 10180Redbridgeup 10935 to 15935Richmond upon Thamesup 4120 to 6190Suttonup 4670 to 7795Waltham Forest up 12385 to 18530