REDUNDANCIES have hit new record highs with 370,000 workers losing their jobs in the three months to October due to the coronavirus crisis.
It comes as the unemployment rate hit 4.9% during the period, with 1.69million people now without a job, according to the Office for National Statistics (ONS).
Redundancies have surged to a record high of 370,000 in the three months to October
The unemployment figures are up 411,000 on the same period the previous year and up 241,000 on the quarter.
In the three months to July, the ONS recorded an unemployment rate of 4.8% as 153,000 people were made redundant.
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 was extended at the last-minute until March 2021.
Between February and November, the number of workers on payroll have now dropped by 819,000.
Darren Morgan, ONS director of economic statistics, said redundancies had begun to ease in October, but this was before the second lockdown in England.
He added: “Overall we have seen a continuation of recent trends, with a further weakening in the labour market.
“The latest monthly tax numbers show over 800,000 fewer employees on the payroll in November than in February, with new analysis finding that over a third of this fall came from the hospitality sector.
“In the three months to October, employment was still falling sharply and unemployment was rising, but the number of people neither working nor looking for work was little changed.”
Jeremy Thomson Cook, chief economist at Equals Money, said: “Winter was always going to be a tough time for the jobs market given the year we’ve had so far.
“But today’s figures show that without ongoing support for businesses and employees, the news from the UK labour market would be nothing short of catastrophic.”
While James Reed, chairman of jobs site Reed, added: “Having said many times over that the furlough scheme would end in October, the Chancellor’s decision to extend it has helped to keep many in employment.
“The jobs market has been through one of its most turbulent periods in recent history, but in the face of adversity, the economy has shown great flexibility, dynamism and entrepreneurialism.
“I’m optimistic that we are moving towards a much better situation for jobs and, with the vaccine now being rolled out, we are a few months away from the economy fully opening up and a thriving jobs market once again.”
The latest unemployment figures come after the Real Living Wage was increased by 20p for workers outside London.
Meanwhile, the Bank of England expected 5million people to be placed on furlough last month – and millions more by the Spring.
We explain if you can be made redundant while on the furlough scheme.
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