Redundancies hit record high as hundreds of thousands lose jobs
More people were made redundant between July and September than at any point on record, according to new official statistics. It comes as the pandemic laid waste to large parts of the economy.
Around 314,000 redundancies were registered during the three months according to the Office for National Statistics (ONS). This figure is up by 181,000 from the quarter before. The data suggests that unemployment in the UK reached 4.8% in the three months to September. It’s an increase of 0.7 percentage points on the quarter before, and 0.9 percentage points from a year ago.
Meanwhile, around 33,000 people were dropped from payrolls in October. This has added to the 782,000 reduction in payrolls since March this year, when the pandemic struck.
ONS deputy national statistician for economic statistics Jonathan Athow said:
The latest monthly tax numbers show over three quarters of a million fewer employees on the payroll in October than in March.
Unemployment grew sharply in the three months to September, with many of those who lost their jobs earlier in the pandemic beginning to look for work again. The number of redundancies has also reached a record high.
Vacancies continued to recover from the very low numbers seen earlier in the year. However, these figures predate the reintroduction of restrictions in many parts of the UK.
Since the figures were taken, several parts of the country have re-entered various stages of lockdown, including severe restrictions in England, which were put in place last week.
Our latest labour market statistics have been published for the period July to September 2020 https://t.co/EaXPo7Rbpo pic.twitter.com/k6XhUfDxOy
— Office for National Statistics (ONS) (@ONS) November 10, 2020
As a result, the government decided to extend its furlough scheme until March next year, ensuring that employees who can’t work will get up to 80% of their salaries.
Suren Thiru, the head of economics at the British Chambers of Commerce, said:
While there was a rise in the number of job vacancies, this is more likely to reflect a temporary bounce as the economy reopened before recent restrictions were reintroduced, rather than a meaningful upturn in demand for labour.
The extension to the furlough scheme will safeguard a significant number of jobs in the near term. However, with firms facing another wave of severely diminished cashflow and revenue and with gaps in Government support persisting, further substantial rises in unemployment remain likely in the coming months.
He called for more grants for businesses that have been hurt by restrictions. And he asked the government to ensure that it closes gaps in its support schemes, including for unemployed people.
We know everyone is suffering under the Tories - but the Canary is a vital weapon in our fight back, and we need your support
The Canary Workers’ Co-op knows life is hard. The Tories are waging a class war against us we’re all having to fight. But like trade unions and community organising, truly independent working-class media is a vital weapon in our armoury.
The Canary doesn’t have the budget of the corporate media. In fact, our income is over 1,000 times less than the Guardian’s. What we do have is a radical agenda that disrupts power and amplifies marginalised communities. But we can only do this with our readers’ support.
So please, help us continue to spread messages of resistance and hope. Even the smallest donation would mean the world to us.
Leave a ReplyYou must be logged in to leave a comment.Join the conversation
Please read our comment moderation policy here.