United Kingdom unemployment climbs to 5%

Marco Green
January 26, 2021

Britain's unemployment rate rose to 5.0%, its highest since early 2016, in the three months to November as the coronavirus pandemic continued to take its toll on the economy and the country went back into a lockdown, official figures showed.

He said: "HMRC early estimates for December 2020 for Scotland also show that there were 2.3 million payrolled employees in Scotland, increasing by 9,000 compared with November, however 67,000 lower than a year ago".

The number of people unemployed in the quarter grew by 418,000 on the same period in 2019 and 202,000 higher than in the previous quarter.

Analysts forecast an increase in unemployment rate after the United Kingdom government's furlough scheme of putting an end to paying wages of private-sector workers at the end of April.

There are now 1.72 million people out of work, and 828,000 fewer people on company payrolls through December compared to February 2020, marking the highest level of unemployment in the United Kingdom since 2016.

Britain's unemployment rate climbs 5.0 per cent at the end of 2020 due to the implications of coronavirus lockdowns, according to official data.

Unemployment in the United Kingdom has continued to rise, driven by a big increase in redundancies, according to the latest monthly report from the Office for National Statistics (ONS).

The number of people in employment dropped 88,000 in the three months to the end of November, the smallest fall since the start of the pandemic and less than the 100,000 drop forecast by economists in a Reuters poll.

The business lobby group, the CBI, has called for the furlough scheme to be extended to June at the earliest to avoid a "cliff edge" for employment.

Responding to the ONS findings, Chancellor Rishi Sunak admitted that the pandemic had gone on longer than the Government had initially forecast but that it would continue to support employers to help safeguard jobs. "We're throwing everything we've got at supporting businesses, individuals and families".

"Our Plan for Jobs includes grants and loans so that firms can keep employees on, the furlough scheme to help protect jobs, and programmes like Kickstart alongside record investment in skills so that people can find their first job, their next job or a new job if needed".

Other reports by Click Lancashire

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