Home Business News As furlough comes to an end unemployment rate rises to 4.5%

As furlough comes to an end unemployment rate rises to 4.5%

13th Oct 20 12:20 pm

As furlough comes to an end on 31 October thousands of people are to lose their jobs, due to the coronavirus pandemic.

ONS Deputy National Statistician for Economic Statistics Jonathan Athow said, “The latest monthly tax numbers show that the number of employees on the payroll was little changed in September. However, in total there were still nearly 700,000 fewer than in March, before the lockdown.

“Our newly adjusted survey figures show that in the latest period almost half a million fewer people were in work than just before the pandemic, while almost 200,000 others said they were employed but were currently not working nor earning any money.

“Since the start of the pandemic there has been a sharp increase in those out of work and job hunting but more people telling us they are not actively looking for work. There has also been a stark rise in the number of people who have recently been made redundant.”

On Monday the Centre for Economic and Business Research (CEBR) warned that businesses will lay off a third of their furloughed staff come the end of October.

The think-tank has predicted that “The low-skills, low-pay sectors which are particularly affected by this crisis [eg hospitality] will not make extensive use of this.

“The scheme is, therefore, unlikely to prevent a major loss of jobs.”

CEBR used data from the Office for National Statistics (ONS) which calculated that more than 1,500,000 further people will be laid off by Christmas.

The think-tank warned that the total number of unemployed will rest just under 3,000,000, with an unemployment rate of 8.5%.

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