Rising unemployment hits young people with 695,000 fewer workers on payroll than in March

More than 695,000 jobs have been lost since the pandemic began to hit the UK, the latest figures reveal.

The Office for National Statistics (ONS) said the unemployment rate rose as another 36,000 jobs fell from payrolls across the country.

Meanwhile, unemployment rose 104,000 to 1.4 million during the three months through July.

It brings the total unemployment figure to 4.1%, as unions warn of a tsunami of layoffs when leave is canceled next month.

The figures correspond to the three months from May to July and are worse than those for the quarter to June, when the rate stood at 3.9%.

The Office for National Statistics said that young workers have been particularly affected by the pandemic.

The ONS said: “Looking in more detail at unemployment by age, the estimated number of unemployed people aged 16 to 24 years increased by 76,000 in the year to 563,000. Other age groups saw drops or very little change during the year.”

He said that retail, aerospace, tourism, aviation and media have been some of the industries hardest hit.

ONS Economic Statistics Director Darren Morgan added: “Some effects of the pandemic on the labor market were starting to wear off in July when parts of the economy reopened. Fewer workers were absent on leave and average hours increased. The number of job vacancies continued to rise, also recovering in August.

“However, with the number of employees on the payroll dropping again in August and unemployment and layoffs soaring in July, it is clear that the coronavirus continues to have a major impact on the world of work.”

Since March, the state has supported about 9.6 million jobs through the licensing plan, which will be eliminated on October 31.

However, Chancellor Rishi Sunak has repeatedly rejected requests for an extension, despite introducing the £ 9 billion scheme to “protect” jobs.

“This is a difficult time for many as the pandemic continues to have a profound impact on people’s work and livelihoods. That is why protecting jobs and helping people return to work remains my business. priority number one.

“We have taken decisive action throughout this crisis, introducing the licensing scheme and outlining a comprehensive Work Plan to support, protect and create opportunities. And we will continue to do so throughout the fall, including supporting people to get back to work through policies like our Job Retention Bonus worth up to £ 9bn. “

The numbers come as Labor leader Sir Keir Starmer will again call on ministers to come up with new measures to protect jobs when the coronavirus leave plan ends.

In a speech to the TUC annual congress on Tuesday, Sir Keir will warn that communities across the country will face the “healing effect of mass unemployment” if the government does not act.

He will offer to work with ministers to develop a “genuine national plan” to protect jobs when the plan closes in late October.

The Labor leader will deliver his speech online, rather than addressing delegates in London in person, because he isolates himself after a member of his household developed possible Covid-19 symptoms.

While the Labor Party has said it accepts that the leave plan cannot continue indefinitely, Sir Keir will argue that with “a little imagination” the government can continue to help those most at risk of losing their jobs.

It will urge ministers to target the sectors under the most pressure, including aviation and retail, as well as businesses in areas affected by local closures.

Sir Keir will also call for an expansion of part-time work, rewarding employers who give people hours instead of cutting jobs, and the provision of training and support for those who cannot return to full-time work.

“At this time of national crisis we should draw inspiration from our past,” he is expected to say.

“Be willing to put partisan 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 invest in skills and training.

“I am making an open offer to the Prime Minister: work with us to keep millions of people working.”

Sir Keir will also ask ministers to ban “firing and rehiring,” when people are notified of firing and then rehired with worse pay and conditions.

“These tactics punish good employers, hit workers hard and hurt our economy,” he is expected to say.

“After a decade of wage moderation, that’s the last thing workers need, and in the middle of a deep recession it’s the last thing our economy needs.”

An HM Treasury spokesperson said: “We already have a national plan not only to protect jobs, but to create new ones, and we are implementing it right now.”

“Thousands of young people will take their first steps at work through our £ 2 billion Kickstart scheme this fall and our Job Retention Bonus of up to £ 9 billion will help companies get those on leave back to work. job.