Hundreds come off furlough in South Tyneside

Hundreds more workers in South Tyneside came off furlough in July – the first month employers had to make a contribution to salaries under the scheme, new figures reveal.

Friday, 10th September 2021, 1:44 pm
More come off furlough scheme

Figures from HM Revenue and Customs show 3,400 jobs held by workers in South Tyneside were furloughed as of July 31 – six per cent of all that were eligible.

That was 800 fewer than the 4,200 furloughed at the end of June – and 60% down on the 8,500 during the 2021 peak in January.

People aged between 30 and 34 made up the highest proportion of those on furlough with 460 (13%) on the scheme.

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In South Tyneside, the manufacturing sector had the highest number of employees coming off furlough – falling by 330.

This was followed by the transportation and storage sector which saw 130 people come off the scheme.

July was the first month that employers had to pay 10% of the salaries of their furloughed workers and contributions rose to 20% in August and September, with the scheme due to finish at the end of this month.

Nationally, there were 1.6 million workers still on furlough at the end of July.

Low pay campaign group, the Resolution Foundation said a slowing down in the number of employees coming off the scheme in July meant there was a risk of a fresh rise in unemployment in the autumn.

Chancellor Rishi Mr Sunak said: "It’s fantastic to see furlough levels at their lowest since the start of the pandemic as the UK gets back to business."