THE Office for National Statistics (ONS) said early estimates showed the number of paid employees dropped by 2.1% or 612,000 in May compared with March.

The number of people temporarily away from work, including furloughed workers, rose by six million at the end of March into April.

The ONS said jobless claims under Universal Credit jumped 23.3% month-on-month in May to 2.8 million and soared 125.9% or 1.6 million since March when the UK was placed in lockdown.

Jonathan Athow, deputy national statistician for economic statistics at the ONS, said: "The slowdown in the economy is now visibly hitting the labour market, especially in terms of hours worked.

"Early indicators for May show that the number of employees on payrolls were down over 600,000 compared with March.

"The Claimant Count was up again, though not all of these people are necessarily unemployed."

He added: "More detailed employment data up to April show a dramatic drop in the number of hours worked, which were down almost 9% in the latest period, partly due to a six million rise in people away from work, including those furloughed."

Lockdown has created a worsening Labour market, experts have said as new employment figures were released.

Jonathan Athow, deputy national statistician at the Office for National Statistics (ONS), told BBC Radio 4's Today programme: "There is a lot going on in the labour market at the moment.

"In the two months to May we saw a 600,000 fall in the number of people on the payroll.

"So, we are starting to see a worsening, worsening labour market."

Mr Athow said: "The big change has been in the number of hours worked. It seems that businesses have really taken advantage of the furlough scheme.

"And we saw six million people on the furlough scheme in April. So, furloughing seems to be were many employers are going."

Asked if May unemployment figures could reach around 5%,, deputy national statistician Mr Athow said: "That would certainly go in that direction if that 600,000 reduction in payroll goes through into unemployment.

"We haven't quite seen the down turn feed through into unemployment yet."

Responding to the figures, Labour's shadow work and pensions secretary Jonathan Reynolds said: "These numbers show that unless the Government acts, the UK is likely to face mass unemployment on a scale not seen for decades once the furlough scheme is withdrawn.

"The Government has been slow at every stage of this crisis - they cannot afford to be slow again in responding to this threat.

"There must be urgent action from the Government to assist the hardest-hit regions and specific support for sectors particularly exposed to the nature of the Covid crisis."