Nearly 1,000,000 people have lost their jobs since the pandemic began

Almost 830,000 Britons have lost their jobs since the start of the pandemic as unemployment reaches a record high, official data has revealed.

In December there were 28.2 million people on UK company payrolls – 828,000 fewer than there were last February before coronavirus hit, the Office for National Statistics (ONS) said.

Unemployment climbed to 5% for the first time in four years in the three months to November, after another 202,000 people lost their jobs as Covid restrictions hammered the jobs market.

Although the chancellor offered a last-minute lifeline through the extension of the furlough scheme until April this year, it was was not enough to save many who had already been let go from their jobs in the run up to the deadline.

An estimated 1.72 million people were unemployed, marking the biggest annual increase in the three months to December 2009 during the global financial crisis.

Workers in parts of London followed by north-eastern Scotland have been hit the hardest, the data revealed.

The hard-hit hospitality industry saw the biggest rise in job losses, as the sector has been battered by months of closures, curfews and further restrictions.

Manufacturing was the second worst hit and in both sectors, the number of people unemployed was up by more than 50,000 on the previous year.

The UK redundancy rate jumped by 10 points over a year to hit 14.2 per 1,000 in the three months to the end of November – the highest rate ever recorded.

And the rate was highest for workers aged between 25 to 34 years.

Head of economic statistics Sam Beckett said: ‘In the three months to November, on our survey data, the employment rate fell sharply again, while the unemployment rate rose to hit 5% for the first time in over four years.

‘The number of people saying they had been made redundant in the previous three months remains at a record high.

‘Meanwhile vacancies, which were rising in summer and early autumn, have been falling in the last couple of months.’

However, there were some positive updates as job vacancies increased, with 81,000 new openings listed in the three months.

Early estimates for December also show that wages increased – with the median monthly salary up by 4.9%, compared with the same month the year before.

Out of all UK nations or regions, Northern Ireland saw the biggest increase in salaries, as median pay jumped 7.2% over the 12 months.

Rishi Sunak said: ‘This crisis has gone on far longer than any of us hoped – and every job lost as a result is a tragedy.

‘Whilst the NHS is working hard to protect people with the vaccine, we’re throwing everything we’ve got at supporting businesses, individuals and families.

‘Our Plan for Jobs includes grants and loans so that firms can keep employees on, the furlough scheme to help protect jobs, and programmes like Kickstart alongside record investment in skills so that people can find their first job, their next job or a new job if needed.’

Minister for Employment Mims Davies MP added: ‘These figures show many people are still facing difficult times, but our support is helping keep millions of workers on payrolls across the country.

She added: ‘The number of vacancies has risen for six consecutive months, our Kickstart Scheme for young people has already created more than 120,000 job placements and we have provided over £280bn to protect incomes and livelihoods as we battle the pandemic.’

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