The unemployment rate rose to 4.8% in the last quarter – the highest level since 2016 – when the coronavirus crisis weighed on the economy with 782,000 fewer employees than in March
Unemployment rose 0.7 percent in the last quarter as the coronavirus crisis weighed on the economy. This became known today.
Official figures showed that the rate in the three months to September was 4.8 percent, 0.9 percentage points higher than a year earlier and 0.7 percentage points higher than the previous quarter.
From June to August, the three-month rolling rate rose by 0.3 percentage points.
There was a record 314,000 layoffs in the three months as the struggling companies wielded the ax.
The number of employees in the UK has fallen by 782,000 since the crisis began in March. Worryingly, they fell another 33,000 between September and October.
Official figures showed that the rate in the three months to September was 4.8 percent, 0.9 percentage points higher than a year earlier and 0.7 percentage points higher than the previous quarter
The numbers show that despite massive government bailouts that supported millions of jobs, the impact of the pandemic was gradually spilling over into the labor market.
Since then, however, the situation has worsened significantly as the coronavirus cases rose sharply again in September.
The government extended its massive vacation program to March after imposing a blanket lockdown in England to control infections.
However, the Bank of England has warned that unemployment will rise dramatically and is expected to peak at 7.75 percent in the second quarter of next year.
Suren Thiru, Head of Commerce at the UK Chambers of Commerce, said: “The rise in the unemployment rate and layoffs is further evidence that the damage the coronavirus pandemic is doing to the UK labor market is increasing.
& # 39; While the number of job vacancies has increased, this is more due to a temporary recovery when the economy reopened before the recent restrictions were reintroduced than to a significant surge in labor demand.
& # 39; The expansion of the vacation program will secure a significant number of jobs in the short term. Given that businesses are once again facing a wave of sharply reduced cash flows and revenues, and gaps in government support remain, unemployment is expected to continue to spike significantly in the coming months. & # 39;
The Bank of England expects unemployment to peak at around 7.75 percent in the second quarter of next year
The Bank of England expects GDP to fall by 11 percent in real terms this year
An 11 percent decline in GDP this year would be the worst in 300 years – and dwarf the downturn triggered by World War I and the Spanish flu