The Office for National Statistics (ONS) said 36,000 more jobs have fallen off payrolls across the country – taking the UK’s total unemployment figure to 1.4 million for the three months to July
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More than 695,000 jobs have been lost since the pandemic started to hit the UK, latest figures reveal.
The Office for National Statistics (ONS) said the rate of unemployment increased as another 36,000 jobs fell off payrolls across the country.
It takes the total unemployment figure to 4.1%, as unions warn of a tsunami of redundancies as furlough is wound down next month.
The figures are for the three months from May to July and are worse than the quarter to June when the rate stood at 3.9%.
The Office for National Statistics said young workers have been particularly hard hit by the pandemic.
The ONS said: « Looking in more detail at unemployment by age, the estimated number of people unemployed aged 16 to 24 years increased by 76,000 on the year to 563,000. Other age groups saw falls or very little change over the year. »
It said retail, aerospace, tourism, aviation and media have been some of the worst affected industries.
ONS director of economic statistics Darren Morgan added: « Some effects of the pandemic on the labour market were beginning to unwind in July as parts of the economy reopened. Fewer workers were away on furlough and average hours rose. The number of job vacancies continued to recover into August, too.
« Nonetheless, with the number of employees on the payroll down again in August and both unemployment and redundancies sharply up in July, it is clear that coronavirus is still having a big impact on the world of work. »
Since March, the state has supported around 9.6million jobs through the furlough scheme, which is due to be axed on October 31.
However, Chancellor Rishi Sunak has repeatedly rejected calls for an extension, despite introducing the £9billion scheme to « protect » jobs.
It’s prompted fears of another bloodbath of redundancies before Christmas as employers struggle to recover from the pandemic.
« This is a difficult time for many as the pandemic continues to have a profound impact on people’s jobs and livelihoods. That’s why protecting jobs and helping people back into work continues to be my number one priority.
“We’ve taken decisive action throughout this crisis, introducing the furlough scheme and outlining a comprehensive Plan for Jobs to support, protect and create opportunities. And we’ll continue to do that through the autumn, including by supporting people back to work through policies such as our Job Retention Bonus worth up to £9 billion. »
The numbers come as Labour leader Sir Keir Starmer is to issue a fresh appeal to ministers to bring forward new measures to protect jobs when the coronavirus furlough scheme comes to an end.
In an address to the TUC annual congress on Tuesday, Sir Keir will warn that communities across the country will face the « scarring effect of mass unemployment » if the Government fails to act.
He will offer to work with ministers to develop a « genuine national plan » to protect jobs when the scheme closes at the end of October.
The Labour leader will deliver his speech online, rather than addressing delegates in London in person, because he is self-isolating after a member of his household developed possible Covid-19 symptoms.
While Labour has said it accepts the furlough scheme cannot continue indefinitely, Sir Keir will argue that with « a bit of imagination » the Government can continue to help those most at risk of losing their jobs.
He will urge ministers to target sectors under the greatest pressure – including aviation and retail, as well as businesses in areas hit by local lockdowns.
Sir Keir will also call for an expansion of part-time working – rewarding employers who give people hours rather than cut jobs – and the provision of training and support for those unable to return to work full-time.
« At this moment of national crisis we should take inspiration from our past, » he is expected to say.
« Be willing to put party differences aside and work together in the interest of the country.
« Imagine how powerful it would be if we could form a genuine national plan to protect jobs, create new ones and investing in skills and training?
« I’m making an open offer to the Prime Minister – work with us to keep millions of people in work. »
Sir Keir will also call on ministers to outlaw « fire and rehire » – when people are given notice of redundancy and then hired back on worse pay and conditions.
« These tactics punish good employers, hit working people hard and harm our economy, » he is expected to say.
« After a decade of pay restraint that’s the last thing working people need, and in the middle of a deep recession it’s the last thing our economy needs. »
A HM Treasury spokesman said: « We already have a national plan to not only protect jobs, but to create new ones – and we are implementing it right now.
« Thousands of young people will take their first steps into work through our £2 billion Kickstart scheme this autumn and our up to £9 billion Job Retention Bonus will help companies bring those on furlough back to work.
Jonathan Reynolds MP, Labour’s Shadow Work and Pensions Secretary, added: « These new figures are deeply concerning, over 5million people are not working and 2.5million have been out of work for three months or more.
« Unemployment will continue to rise unless the Government acts now and adopts a more flexible approach targeted at the sectors that need it most »
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