According to the OBR, the unemployment rate will rise to a peak of 7.5% – or 2.6 million people – in the second quarter of 2021.
Handing over his spending statement, Chancellor Rishi Sunak said nearly £ 3 billion would be provided to Secretary for Work and Pensions Therese Coffey to implement a new three-year ‘reboot’ program to empower more than a million people who have already spent more than Be unemployed for 12 months, to help find new work.
After the peak next year, however, the number of unemployed will fall.
The Chancellor said, “Unemployment is expected to fall to 4.4% every year by the end of 2024.”
The latest figures show that the number of UK workers on the payroll has now fallen by 782,000 between March and October as a result of the fallout from the coronavirus pandemic.
The Office for National Statistics (ONS) said that in the three months to September 2020, the most recent figures in the report, layoffs hit a record high of 314,000 – an increase of 181,000 over the quarter.
The overall UK unemployment rate over the same period was 4.8%, up 0.9 percentage point from the same period last year and 0.7 percentage point from the previous quarter.
According to the ONS, an estimated 1.62 million people were unemployed, 318,000 more than a year earlier and 243,000 more than the previous quarter.
However, those numbers will skyrocket when the leave schedule ends.
US Deputy National Statistician for Economic Statistics Jonathan Athow said: “The latest monthly tax figures show that there were more than three-quarters of a million fewer employees on the payroll in October than in March.
“Unemployment has risen sharply in the three months to September, with many of those previously lost in the pandemic returning to look for work. The number of layoffs has also reached record levels.
“Job vacancies continued to recover from the very low number earlier this year. However, these figures predate the reintroduction of restrictions in many parts of the UK.”