DAVY VIEW

The news that Pandemic Unemployment Payment (PUP) claimants have moved sharply up to 398,000, implying a COVID-19 adjusted unemployment rate of 22.9% and now above November’s peak, illustrates that the third lockdown is having a more negative impact on economic activity. That said, it is still well below the 602,000 peak in April. This week’s numbers were notable for including a first marked rise in claimants from the construction sector, which was shut down last week.