The Office for National Statistics said estimates show 32.92 million people were in employment between April and June, 113,000 more than a year before, but 220,000 fewer than the previous quarter.

"Survey data show employment is weakening and unemployment is largely unchanged because of increases in economic inactivity, with people out of work but not currently looking for work," it added.

The latest data shows the number of people claiming unemployment benefits reached 2.7 million in July 2020, an increase of 116.8% since March.

"A large number of people are estimated to be temporarily away from work, including furloughed workers; approximately 7.5 million in June 2020 with over 3 million of these being away for three months or more," the ONS said.

The CBI, a British business lobby group, said the data "shows the devastating mark left on the labour market by the coronavirus crisis.'.

under stringent lockdown measures to contain the virus in the quarter to June, fall in jobs and hours worked is to be expected," Matthew Percival, CBI Director for People and Skills, said.