LONDON – Britain’s unemployment rate edged up to 5.1% in the final quarter of last year, official data showed today, as coronavirus lockdowns slashed economic activity.
The rate compares with 5.0% in the three months to the end of November, which was a 4.5-year high, said the National Statistics Office (ONS) in a statement.
Analysts expect unemployment to surge when the United Kingdom government’s furlough scheme paying the bulk of wages for millions of private sector workers comes to a stop – as currently planned – at the end of April.
Finance Minister Rishi Sunak today hinted at further employment support in the coming months as England begins to exit its third lockdown starting early next month.
Details are expected to come in his annual Budget next week.
“I know how incredibly tough the past year has been for everyone, and every job lost is a personal tragedy,” said the chancellor of the exchequer in a statement.
“That’s why throughout the crisis, my focus has been on doing everything we can to protect jobs and livelihoods.
“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.”
Prime Minister Boris Johnson yesterday set out a four-step plan to ease Covid-19 restrictions, expressing hope that life could get back to normal by end-June.
In a statement to Parliament, he outlined a “gradual and cautious” approach to lifting curbs in England, starting with the reopening of schools from March 8 and non-essential retail from April 12.
ONS added that at 5.1%, the unemployment rate is 1.3 percentage points higher than in the final quarter of 2019.
The number of payroll employees tumbled by 726,000 between February and January, it said.
“The rise in the unemployment rate... to 5.1% in December is another step up on the climb towards the 6.5% peak we expect by the end of the year,” said Thomas Pugh, an economist at the Capital Economics research group.
“But with the end of Covid-19 restrictions now in sight, the jobless rate may be back at 4.0% in 2023.” – AFP, February 23, 2021
