COVID-19: Redundancies reach a record high, according to the ONS
The UK’s rate of unemployment rose to 4.8 per cent in the period between June and September, while redundancies reached a record high, according to the latest data from the Office for National Statistics (ONS).
The figures show that redundancies increased to 314,000 in the period, with employers making redundancy considerations as the Coronavirus Job Retention Scheme (CJRS) began to taper down ahead of the originally planned closing date at the end of October.
While the CJRS has now been extended until March 2021, and employers can re-hire employees that were employed as of 23 September, and on the payroll on or before 30 October, some experts say this extension came too late for many that were made redundant in this time.
In total, the unemployment figures rose by 243,000 in the three months to September, which is the largest quarterly increase in more than a decade. The redundancy figure was higher owing to many people who may have either retired or decided not to look for work after being made redundant, thus not appearing in the official unemployment figures.
Rishi Sunak, Chancellor of the Exchequer, said: “I know that this is a tough time for those who have sadly already lost their jobs, and I want to reassure anyone that is worried about the coming winter months that we will continue to support those affected and protect the lives and livelihoods of people across this country,”
The Government has extended many key coronavirus business support measures with England entering a second national Lockdown until 2 December, but many employers will now be making key considerations over whether employees should be furloughed and also looking ahead at potential redundancy decisions in the spring as the CJRS comes to an end.
At AGS HR, we can advise on all aspects of the challenges you may face, such as returning to work, reviewing employment contracts and redundancy considerations, with easy to use documents and practical advice.
For help and advice, contact our expert team at AGS HR Solutions today to discuss your requirements.
