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
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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.

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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

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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

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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

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