The Office for National Statistics (ONS) has released the figures for the UK’s unemployment rate in the three months to September.
The data shows that those not in employment rose to 4.8%, up from 4.5% as the world continues to battle against COVID-19. Redundancies have also increased to a record high of 314,000 in the same period.
The recent figures show businesses are now having to make tough decisions when reducing their costs in what has been an incredibly challenging year.
The Chamber’s recent economic indicator found that a quarter of businesses in Herefordshire and Worcestershire have reported a reduction of their workforce in the last three months.
Whilst the data released shows the impact of coronavirus on the UK market, the extension of The Coronavirus Job Retention Scheme (or ‘furlough’ scheme) will make it difficult to get a true picture of the unemployment rate until its end next year.
The ONS figures show that there has been a big rise in the number of 16-24-year-olds out of work, with unemployment rates among young people now far higher than the overall rate.
Commenting on the ONS labour market statistics, British Chambers of Commerce Head of Economics Suren Thiru said:
“The rise in the unemployment rate and redundancies is further evidence that the damage being done to the UK jobs market by the Coronavirus pandemic is intensifying.
“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.
“Increased grant support for businesses impacted by restrictions is urgently needed to help businesses protect jobs, particularly given the delay to the job retention bonus. Closing the remaining gaps in government support, including for some self-employed and company directors must also be a key priority.”
As businesses can now see the facts and figures of how COVID-19 is impacting the workforce, many may be wondering what they can do to support workers nationally.
The Kickstart Scheme is a £2 billion fund designed to create hundreds of thousands of high quality, 6-month work placements for young people affected by high unemployment rates and are claiming universal credit.
The government scheme is aimed at helping young people into work, and the Chamber together in partnership with the British Chambers of Commerce network is working to support businesses maximise the benefits of the initiative.
The government will fund 100% of the relevant National Minimum Wage for 25 hours per week, plus associated employer National Insurance contributions and employer minimum automatic enrolment contributions. £1,500 is also available per placement to support and train the young person/people.
For any business wanting to find out more information, or is looking to create job opportunities for young people, can apply to the scheme here.