Britain’s unemployment rate declined for the fourth consecutive month in April as firms employed more staff as coronavirus restrictions started to ease.

According to the Office for National Statistics, the UK’s jobs market revealed additional indications of recovery as non-essential stores and hospitality venues were permitted to re-open outdoors across the country.

The unemployment dropped to 4.7% in the three months to April, representing around 1.6 million people, The Guardian reports. This is a marginal improvement from 4.8% in the first quarter.

Businesses hired more staff to deal with the pent-up demand as restrictions were relaxed, with the number of workers on firms’ payrolls up for a sixth straight month. The HMRC figures for May showed a 197,000 rise to 28.5 million.

Nevertheless, this figure remains 553,000 below pre-pandemic levels. The impact of the coronavirus crisis has struck hospitality workers, young adults and people residing in London the most, according to the data.

The latest figures follow Chancellor Rishi Sunak rejecting demands from businesses to prolong the furlough scheme, despite the four-week delay to the easing of restrictions announced on Monday.

Business leaders have cautioned that should the support come to an end, thousands of jobs will be at risk over summer, as the furlough scheme starts to wind down at the start of next month.

The Chancellor said the government’s plan for jobs was effective: “We understand the value of work and the distress caused by unemployment – that is why we are continuing to support people and jobs,” he said.

“The furlough scheme is running all the way through until September and we are creating new routes into work through apprenticeships, Kickstart placements for young people as well as targeted support for the long term unemployed.”

The Bank of England forecasts the jobless rate to hit a high of around 5.5% after the furlough ends, compared to 4% – or about 1.3 million people – before the Covid crisis.