UNEMPLOYMENT has already increased 141 per cent in York as a result of the coronavirus crisis.

And jobseekers face “the toughest labour market in living memory” - according to West Yorkshire Combined Authority (WYCA).

A York recruitment expert fears unemployment levels could get even worse by August - when changes to the furlough scheme mean employers pay more.

Young people and those aged over 50 are worst affected - with many people in their 50s or older not expected to go back to work, according to a report by the authority.

Clare Hutchison, from York’s One to One Recruitment agency, said: “I have worked in recruitment for 30 years and been through several recessions. This is by far the worst I have seen.

“At the point in August when employers start contributing more to the furlough scheme, I think it’s going to be horrendous for some business and put a huge strain on their stability. Not only will organisations have been forced to reduce overheads and labour costs post furlough, they will have had the opportunity to realise slack too.

“I worry that unemployment in certain sectors is going to be massive towards the end of July and August.

“However, it will pick up and I think we will have a massive bounce back – but nobody can tell when that’s going to happen.”

She said employers will be looking for staff who can do lots of different tasks within a business – such as administration, finance and any PA-related work.

And that the way employers recruit will change - with some people feeling fearful of physically going to interviews. Businesses will need the latest technology and new starters may never have seen the premises or met their colleagues in person before they start work.

The combined authority report says areas reliant on retail and hospitality have seen the biggest jumps in unemployment. West Yorkshire fares better than York and North Yorkshire.

Job adverts have fallen by more than 60 per cent across the region - and there are now six unemployed people for every vacancy listed.

The authority is working on an economic recovery plan for the region. It says: “Most analysts agree that the initial employment impact would have been significantly higher without the ability to furlough workers.

“While forecasts suggest the unemployment rate could exceed 10 per cent later in 2020, extending the Government’s Job Retention Scheme should help limit the increase.”

York Central MP Rachael Maskell said she is “deeply concerned” that the city’s economy will be hit - causing hardship for residents.

She said: “I have long warned that York’s economy needs to be more diverse and investment was needed in securing better, more secure jobs in a range of industries. This is why I have supported the universities' and colleges' call for an innovation and skills approach to build a more sustainable economy in core industries like the biotech industry and the digital creative sector, where York could take a significant national lead.”

Selby has seen unemployment rise 114 per cent, while Harrogate has seen the number of claimants increase by more than half - at 158 per cent.

One to One recruitment is offering support to jobseekers and companies, including help with CVs, job hunting, skills and interviews.

Clare added: “People lose a lot of confidence when they are made redundant, and the prospect of so many people going for the same job as them is very real.

“It’s also something we offer to businesses, as many of them feel a social responsibility to the people they let go and will pay for them to take part in outplacement.”

The meeting of the WYCA Inclusive Growth and Public Policy Panel takes place on Monday.