The unemployment rate has risen to its highest level in three years due to the coronavirus pandemic.
An estimated 1.5 million people were unemployed between June and August, which is 209,000 more than a year earlier, the Office for National Statistics (ONS) said.
The unemployment rate grew to 4.5% in the three months to August, compared to 4.1% in the previous months to that.
The ONS added the number of UK workers on payrolls increased by 20,000 last month, but has fallen by 673,000 in total between March and September.
Jonathan Athow, deputy national statistician at the ONS, said: ‘The latest monthly tax numbers show that the number of employees on the payroll was little changed in September.
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‘However, in total there were still nearly 700,000 fewer than in March, before the lockdown.
‘Our newly adjusted survey figures show that in the latest period almost half a million fewer people were in work than just before the pandemic, while almost 200,000 others said they were employed but were currently not working nor earning any money.
‘Since the start of the pandemic there has been a sharp increase in those out of work and job hunting but more people telling us they are not actively looking for work.
‘There has also been a stark rise in the number of people who have recently been made redundant.’
Think Tank the Work Foundation says despite September seeing a record increase in the number of vacancies, there are still more than 40% fewer vacancies in the economy compared to last year.
Director Ben Harrison said: ‘Unfortunately, over the months ahead the picture is likely to worsen. Unemployment is set to rise further and the prospect of getting a new job will remain extremely challenging as most organisations are unlikely to resume recruitment during the second wave of the pandemic.
‘It’s vital that the Government strengthens our social safety net so that people can get the support they need during this time – beginning by reversing plans to cut essential Universal Credit payments by £20 per week and removing the threat of sanctions for those looking for work in these challenging circumstances.’
Minister for Employment, Mims Davies, said: ‘We know the virus has impacted our jobs market in recent months and that’s why our £30 billion Plan for Jobs will continue to help protect, support and create jobs.
‘It’s encouraging to see employers are bringing people back from furlough, and the number of vacancies is increasing.
‘We’re supporting people into work, doubling the number of our work coaches across job centres and helping those made jobless by the pandemic through our newly launched Job Entry Targeted Support. From next month young people across the country will be starting roles on the £2 billion Kickstart scheme helping them get crucial experience and build vital skills.’
The news comes as the end of the Government’s furlough scheme approaches on October 31 – which has kept many in jobs through the height of the pandemic.
There are fears this will mean more redundancies across the country as we head towards Christmas.
But chancellor Rishi Sunak unveiled the second part of his Job Support Scheme last week as part of his Winter Economic Plan.
Under the new plans, the Government will subsidise two thirds of wages of employees, such as those who work in pubs and restaurants, if their workplaces are forced to shut in a local lockdown.
Mr Sunak said: ‘Throughout this crisis my priority has always been to protect jobs so today I’m announcing an expansion of our Jobs Support Scheme, specifically to protect those jobs of people who work in businesses who may be asked to close.
‘If that happens those workers will receive two thirds of their wages for the time that they’re unable to go to work.
‘I hope this provides reassurance and a safety net for people and businesses in advance of what may be a difficult winter.’
Mr Sunak denied it was an extension to the furlough scheme but the new plan is being dubbed a ‘local furlough’.
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