Record Redundancies and Falling Payroll Employees, but Recovery Signs Emerging
- UK unemployment rate reaches 4.5%
- Total number of unemployed increases to 1.58 million
- 227,000 people made redundant in the period – highest since 2007 financial crisis
- Payroll employees down by 673,000 since pandemic start
- 20,000 more people in payrolled employment since September
- Record quarterly increase of 144,000 vacancies from April to September
- Vacancies still below pre-pandemic levels by 332,000 (40.5%)
- Total hours worked increased by 20m or 2.3% since March to August
- Average weekly hours up 0.7 hours on the quarter
- Employment rate decreasing, unemployment and redundancies increasing
- Annual growth in employee pay strengthens in August as furloughed employees return
The UK’s unemployment rate has reached a three-year high of 4.5%, with the number of unemployed rising to 1.58 million people during July to August, according to the Office for National Statistics (ONS). Over 227,000 were made redundant in this period – the highest since the 2007 financial crisis. Since March, payroll employees have dropped by 673,000. However, there has been a modest increase of 20,000 more people in payrolled employment compared to August 2020. Vacancies increased by a record 144,000 from April to September 2020, although they remain below pre-pandemic levels. The ONS noted that total hours worked have risen by 20m or 2.3% since March to August, with average weekly hours up 0.7 hours on the quarter. Despite these challenges, signs of recovery are emerging as employee pay growth strengthened in August following furlough periods.
Factuality Level: 8
Factuality Justification: The article provides accurate information based on data from the Office of National Statistics (ONS) and presents a clear picture of the current state of UK employment during the pandemic. It includes relevant details about unemployment rate, redundancies, payrolled employment, vacancies, total hours worked, and employee pay. The article also acknowledges the impact of the coronavirus pandemic on these figures. However, it could have provided more context or analysis to help readers understand the reasons behind the changes in these statistics.
Noise Level: 3
Noise Justification: The article provides relevant information about the UK unemployment rate and its trends during the pandemic, as well as some context on vacancies and hours worked. It also mentions a modest increase in employment since September. The language is clear and concise, and the data sources are cited. However, it could benefit from more analysis or discussion of potential long-term consequences or solutions to the issue.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the impact of the UK unemployment rate on payroll employment, vacancies, and total hours worked, which can affect companies’ financial performance and overall economic stability.
Financial Rating Justification: The article covers financial topics such as unemployment rate, job losses, and changes in employee pay, all of which have direct implications for businesses and the economy.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: While there are significant economic impacts mentioned in the article, such as increased unemployment and redundancies, it does not describe an extreme event that happened within the last 48 hours. The situation is being attributed to the ongoing coronavirus pandemic which has been affecting the economy for over a year.
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