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COST OF COVID

UK unemployment hits 4.8% as 782,000 Brits out of work since March

GRIM unemployment data shows 782,000 people have lost jobs since March - with the rate hitting 4.8% in three months to September.

The Office for National Statistics (ONS) said the unemployment rate increased from 4.5% from the month before.

UK unemployment has reached 4.8% in the three months to September
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UK unemployment has reached 4.8% in the three months to September

It means the level of unemployment in the UK is now at its highest level in four years, or since November 2016.

In total, an estimated 1.62million people were unemployed from July to September 2020 - up 318,000 on the year and up 243,000 on the quarter.

Redundancies also reached their highest level on record, hitting 314,000 from July to September 2020 - an increase of 181,000 on the previous quarter.

The number of 16 to 24-year-olds in work also plunged by 174,000 to reach its lowest ever level.

What are my redundancy rights?

BEFORE making you unemployed, your employer should still carry out a fair redundancy process.

You are entitled to be consulted on the redundancy lay-off first and to receive a statutory redundancy payment, as long as you've been working somewhere for at least two years.

How much you're entitled to depends on your age and length of service, although this is capped at 20 years. You'll get:

  • Half a week’s pay for each full year you were under 22,
  • One week’s pay for each full year you were 22 or older, but under 41,
  • One and half week’s pay for each full year you were 41 or older.

Sadly, you won't be entitled to a payout if you've been working for your employer for fewer than two years.

There should be a period of collective consultation as well as time for individual ones if your employer wants to make 20 or more employees redundant within 90 days or each other.

You are also entitled to appeal the decision by claiming unfair dismissal within three months of being let go.

Businesses made more workers redundant in the weeks leading up to when the furlough scheme was due to end.

Furlough was supposed to end in October but the scheme has now been extended until March 2021.

Big-name brands that have announced mass job cuts in recent weeks and months include Sainsbury’s and Argos, Lloyds, John Lewis and Pret a Manger

Chancellor Rishi Sunak confirmed he was extending furlough for workers in an update in the House of Commons earlier this month.

Responding to the latest jobless numbers, Mr Sunak said: "Today's figures underline the scale of the challenge we're facing.

"I know that this is a tough time for those who have sadly already lost their jobs, and I want to reassure anyone that is worried about the coming winter months that we will continue to support those affected and protect the lives and livelihoods of people across this country."

It comes amid warnings that the UK jobs crisis will get worse over the next few months and going into next year.

Last week, the Bank of England said it's predicting unemployment will peak at 7.75% by spring 2021.

The UK has already plunged into its deepest recession ever recorded after the economy shrunk by a record 20.4% in just three months.

The latest gross domestic product (GDP) figures will be released later this week.

However, the latest ONS figures showed a recovery in job vacancies in the three months to September, with 146,000 more listings available.

But this level is still 34.6% lower than a year ago.

Experts also point out that the recovery is before new coronavirus restrictions were brought in across England in November.

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."

Minister for employment Mims Davies MP said: "This remains a challenging time for families across the country and today’s figures show the impact the virus is having on our labour market. 

"Through our Plan for Jobs we have a relentless focus on protecting, supporting and creating jobs and we continue to help people of all ages into work.

"We’re doubling the number of Work Coaches across our Jobcentres with 4,500 already taking up posts, our £2billion Kickstart scheme is under way with the first recruits starting last week, and our JETS programme is supporting those who have lost jobs due to the pandemic."

Jack Kennedy, UK economist at job site Indeed, said: “Two things are clear from the UK labour market’s mixed signals - the pain of job losses is being felt unevenly, but the Chancellor’s furlough medicine appears to be working.

“Even though the very latest data suggests the overall pace of job losses is easing - the number of payrolled workers dipped by a relatively modest 33,000 in October - younger people are being hit disproportionately hard.

“During the last quarter, the number of 16 to 24-year-olds in work plunged by 174,000 to reach its lowest ever level."

The Sun says

THE latest job losses are bad enough — but wait for the effect of the second lockdown.

We consider it economically crippling and needless, given how effective the tiers system was, and the forthcoming tsunami of redundancies will prove it.

That said, the idea Chancellor Rishi Sunak should take the blame is a cynical confection of the Left, desperate to discredit the popular Tory.

His bailouts have saved countless jobs. And he was right to say, when it seemed Covid was in full retreat, that the ruinously costly furlough scheme had to end.

Just as he was right, once the second wave was on us, to keep it going.

Labour demand rapid, endless restrictions and limitless spending. But such punts are risk-free for this irresponsible Opposition. The Government would cop all of the blame if they backfired.

It’s fashionable to say the Opposition leader has the hardest job in politics.

Covid proves that to be utter cobblers.

The latest unemployment figures come after the Real Living Wage was increased by 20p for workers outside London.

READ MORE SUN STORIES

Meanwhile, the Bank of England expects 5million people to be placed on furlough this month.

We explain if you can be made redundant while on the furlough scheme.

The UK government's furlough scheme will end on October 31 with worries of rising unemployment
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