The UK unemployment rate has climbed to its highest level in more than three years as the coronavirus pandemic continues to rock the economy.
The Office for National Statistics said the unemployment rate reached 4.5 per cent over June to August 2020. This is up from 4.1 per cent from the previous three-month period and up from 3.9 per cent a year earlier.
This means that an estimated 1.52 million people were unemployed during the period - 138,000 more than the previous quarter and 209,000 more than the year before.
Source: Office for National Statistics
In addition, the number of people made redundant over the three-month period amounted to 227,000. This followed a record increase of 114,000 on the prior quarter and takes redundancies to their highest level since 2009.
Laith Khalaf, financial analyst at AJ Bell, said: “Unemployment isn’t high by historical standards, but the picture is clearly deteriorating. We’re beginning to see what the economic wound looks like as the bandage of furlough is gradually removed.
“August was the month where employers started to pay towards the cost of furloughed employers - only employer National Insurance payments and pension contributions at that point, but even more is required in September and October. The new Jobs Support Scheme will help to cushion the blow, but we’re likely looking at the thin end of the wedge when it comes to unemployment.”