Sharp rise in unemployment

Date : 13 October 2020

The latest ONS data suggests a sharp deterioration in the UK labour market over Summer 2020.

Data for July 2020 shows that 1,522,000 people were unemployed, giving an unemployment rate of 4.5% - the highest since March 2017.

Young adults were especially likely to be unemployed – the unemployment rate for 18-24’s has risen from 10.7% in February (just before Coronavirus took hold) to 13.1% in July, more than twice the overall rate.

The vulnerability of young adults to economic shock was noted after the Credit Crunch and it appears to remain the case now, therefore the government has adopted policy measures to support this group.

The number of redundancies is growing, suggesting that unemployment figures will continue to rise in the months ahead.

Falling employment and the rising fear of unemployment are unhelpful for shopper-facing businesses, even those selling “non-discretionary” items such as food and drink.

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