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Covid-19: UK unemployment rate rises to 5.0% during pandemic

The UK’s unemployment rate has risen to 5% in the three months to November as coronavirus continues to hit the job market and tougher lockdown measures put more pressure on businesses, latest figures show. 

 

According to the Office for National Statistics (ONS), there were an estimated 1.72 million people unemployed in the UK from September to November 2020. Up 418,000 in the same period the previous year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The figures demonstrate the impact the coronavirus pandemic has had on the number of people out of work and the opportunities available. 

 

Statistics show job losses were mostly among younger workers and the retail and hospitality industry. 

 

In Wales, non-essential shops were among the first places to close during both the first and firebreak lockdowns. 

 

The hospitality industry has also faced significant challenges with pubs, cafes, bars and restaurants closing during this period of the 17-day shutdown.

 

Restrictions around opening times and the serving of alcohol were introduced following the firebreak, as well as indoor entertainment and visitor attractions. 

 

A Welsh Independent Restaurant Collective has been formed by a group of restaurant owners to give a stronger voice to the sector. 

 

Kasim Ali, founding WIRC member, and owner of the Waterloo Tea chain of cafes in Cardiff said: "The industry is anxiously waiting.” 

 

Calculating that lockdown and social distancing measures had put 30,000 jobs at risk in Wales, the Collective is campaigning for greater support from the government at all levels. 

The Latest figures from December, in the UK, also show a fall of almost 800,000 people in work compared to the same month in 2019. 

 

Mr Ali is concerned the new restrictions could lead to businesses unable to financially support employees while on furlough. 

 

“It is clear that if the current or only slightly-loosened restrictions are in play, that the industry will be unable to achieve the turnover figures necessary to maintain employment for those who have been so far kept in employment through furlough.” 

 

The number of jobs on furlough doubled to 5 million since November. The scheme, where employees receive 80% of their wages from the government to help businesses through the pandemic, has been extended until the end of April. 

 

Responding to the unemployment figures, Chancellor Rishi Sunak said, “This crisis has gone on far longer than any of us hoped. We’re throwing everything we’ve got at supporting businesses. 

 

"My number one priority is to protect jobs and livelihoods across the UK. The Spending Review will ensure hundreds of thousands of jobs are supported and protected in the acute phase of this crisis and beyond with a multi-billion package of investment to ensure that no one is left without hope or opportunity." 

 

Mr Ali wants the government to continue supporting the hospitality sector during the pandemic. 

 

“With normality still seemingly months away, it is crucial for the government to continue supporting our sector. 

 

“If they do not more jobs will be lost and with that, the knock-on effects will be felt both throughout the industry and in wider society," he said.

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