UK unemployment rate spikes to highest level in five years

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UK unemployment rate spikes to highest level in five years

Earlier on Tuesday, Government data revealed that Britain’s unemployment rate rose to a staggering 5.0 per cent over the past three months as a series of pandemic outbreaks in this winter coupled with an emergence of a highly contagious variant of the pandemic pathogen, continued to take a clattering toll on UK economy and forced the Britons to return in to a stiffer lockdown.

Aside from that, Britain’s Office for National Statistics, had also added in a separate statement that the number of people employed by the Britons had been down by 2.7 per cent in December compared to the same time a year earlier, while recruitment in private payrolls decreased by a seasonally adjusted 828,000 from the figure registered at the beginning of pandemic back in February 2020.

Job Retention scheme keeps a lid on unemployment rate

Although a global-scale pandemic outbreak had inflicted a deeper wound into the vast services sector in Britain, British Government’s Job Retention Scheme, which had reportedly backed as many as 2.4 million jobs as of October 31, 2020, had kept a lid on a high-flying unemployment rate in Britain.

Notably, the British Government’s Job Retention Scheme, which had supported a record peak of 8.9 million jobs back in May last year, has been the most expensive pandemic support measure thus far for a relatively resilient British economy, while the scheme had costed an approximated £46.4 billion as of mid-December 2020.

Although the Job Retention Scheme is set to expire by April 30, British Finance Minister Rishi Sunak, specially handpicked by PM Johnson who ousted Sajid Javid last year and had offered the Tori PM a superior access into the British Treasury, has been expected to unleash a number of future fiscal support measures at his annual budget speech on March 3.

Meanwhile, Sunak, widely criticised as a pawn for UK PM Boris Johnson, said following the release of employment data, “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 (National Health Service) is working hard to protect people with the vaccine we’re throwing everything we’ve got at supporting businesses, individuals and families”.