Connect with us

Hi, what are you looking for?

Editor’s Pick

Under-25s hit worst as unemployment rises again

The unemployment rate has risen to its highest level in almost five years, with younger workers bearing the brunt of the job losses, official figures show.

The UK’s jobless rate rose to 5.1% in the three months to December, with the number of people on company payrolls down 726,000 on pre-pandemic levels.

Almost three-fifths of these were younger than 25 years.

There were, however, some early signs of stabilisation in the jobs market.

The Office for National Statistics (ONS) said there was a small increase in the numbers of employees paid through payroll over the past couple of months, with 83,000 more people on the books in January compared with the previous month.

Average pay rose, too, by 4.7% including bonuses, although this was said to be a statistical quirk rather than a sign of lasting wage growth,

Statisticians said this was partly because of the disproportionate fall in the number of young, typically lower-paid workers. Adjusting for this, the ONS said underlying wage growth was “likely to be under 3%”.

The ONS said 1.74 million people were unemployed in the October to December period, up 454,000 from the same quarter in 2019.

Furlough uncertainty

“Our survey shows that the unemployment rate has had the biggest annual rise since the financial crisis,” said Jonathan Athow, ONS deputy national statistician for economic statistics.

“However, the proportion of people who are neither working nor looking for work has stabilised after rising sharply at the start of the pandemic, with many people who lost their jobs early on having now started looking for work.”

Despite this, Mr Athow told the BBC that the true underlying picture was not yet clear due to the high number of people still on furlough.

He said figures from early February suggested that about six million people were currently furloughed, adding: “There is a huge amount of uncertainty about what will happen to them when that scheme ends.”

The Bank of England is forecasting that the unemployment rate will rise sharply, peaking at an estimated 7.8% later in the year.

‘I wasn’t going anywhere’

Keighlie Holt is a 20 year-old hairdresser from Blackpool, which has the highest youth unemployment in the UK. The impact of covid on her industry means she has has only worked for a fraction of the year.

She is now retraining as a social media analyst: “Last year I did what felt like, literally, three months of work.

“December wasn’t anywhere near what it’s like on any other December, that’s normally our busiest time. And then it just wasn’t going to go back to normal. No one wanted to get their hair done. No, I wasn’t going anywhere.”

The Chancellor, Rishi Sunak, is preparing for next week’s Budget, which is expected to set out further plans to help the labour market.

“I know how incredibly tough the past year has been for everyone, and every job lost is a personal tragedy,” Mr Sunak said.

“At the Budget next week I will set out the next stage of our Plan for Jobs, and the support we’ll provide through the remainder of the pandemic and our recovery.”

Labour’s shadow chancellor, Anneliese Dodds, claimed some businesses were “throwing in the towel” because the government was taking too long to confirm what business support would be available to them over the next six months.

Ms Dodds criticised the government for announcing its roadmap to ending lockdown “without the clarity of business support”. She told the BBC ministers “may relish the theatre of budget” but it was “wrong to put decisions off until the Budget”, as some businesses had decided to “give up”.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Latest

News

Manila and nearby cities will remain under a general lockdown next month amid a coronavirus pandemic, according to the presidential palace. President Rodrigo R....

News

PHILSTAR President Rodrigo R. Duterte on Friday night signed a measure creating a levy trust fund for coconut farmers, according to the presidential palace....

News

By Kyle Aristophere T. Atienza President Rodrigo R. Duterte on Friday signed a proclamation declaring fewer nonworking days this year supposedly to...

News

An inter-agency task force has approved a plan to inoculate FIlipino health workers against the coronavirus using vaccines from Chinese drugmaker Sinovac BIotech Ltd.,...

News

Philippine President Rodrigo R. Duterte on Friday night signed a measure that will fast-track coronavirus vaccine orders. “We are confident that the signing of...

News

The Philippine military is targeting to vaccinate 100 soldiers against the coronavirus daily once the first batch of vaccines from China’s Sinovac Biotech Ltd....

You May Also Like

When people envision technology overtaking society, many think of The Terminator and bulletproof robots. Or Big Brother in George Orwell’s Nineteen Eighty-Four, a symbol...

Financial Advisors

Stock Markets9 hours ago (Jul 02, 2020 04:45AM ET) (C) Reuters. ROME (Reuters) – World food prices rose in June to post their first...

Economy

SAN FRANCISCO — The spread of the coronavirus has meant feast or famine for technology start-ups. While many are cutting staff and slashing costs...

Economy

In Wisconsin and Ohio, farmers are dumping thousands of gallons of fresh milk into lagoons and manure pits. An Idaho farmer has dug huge...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 Respect Investment. All Rights Reserved.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!