Jessica Rodz March 2, 2021
For sure, after the flood of chaos due to the corona pandemic, unemployment has become a huge issue, and we cannot avoid talking about it. The United Kingdom that always enjoyed the tag of one of the most enriched and equipped economies, now have less to say on its financial strength. The reason, we all know. The covid-19 is still taking control of human lives in the UK and creating more reasons for economic downfall with things like lockdown. FACT CHECK -
The claimants for out-of-work benefits have risen by 113.2% since March 2020. If you see the comparison, you will notice that even today, the circumstances are not good. In fact, we have more number of people searching for help. The applicants have to keep an eye on the terms and conditions to qualify because the conditions have changed.
The new job postings are there but not in all locations. The conditions are the same. Due to this reason, still many people seek government benefits. The cities or urban areas where the market is still sitting quietly have to depend more on such support.
- October to December unemployment rate was 5%
- The unemployment rate will rise up to 7.75%
New year 2021 – Is there any good news or a ray of hope?Yes, some positive signs are there, but it will be unwise to jump to a conclusion. Yes, there are signs of good news, but the black clouds of prevalent unemployment are taking rounds. Perhaps the better approach is to delve into the detail of the entire situation and see what is really happening in the UK.
Unemployment continues in the UK in 2021We cannot talk about the results without talking about its stimulators. The smoke breeds from the fire. Similarly, the corona pandemic has caused reasons to feed unemployment. Have a look at the situations that make the job loss situations continue even in the New Year.
- Third wave sponsored lockdown – When the economy was planning to make revival plans and FINALLY come out of the trauma of corona virus, the third wave came. The already weak circumstances got intense and severe.
- Industries detonated by repeated lockdown - Hospitality, entertainment and retail are the most affected industries that are having a very hard time on survival possibilities. After reaching the breaking point, many industries finally surrendered and expressed their insufficiency to pay their workers. Last year lockdown happened. This year also continued, how long the businesses can continue to survive without the fuel of employees and adequate sale.
- The Vaccine struggle – For Government, it is impossible to let people go out until the vaccine does not medicate them. People cannot go out. Not all sorts of jobs and businesses can survive with work from the home strategy. But what to do. Now the vaccine is there, but the problems exist from last year, and the vaccine took time. By the time of its arrival, many people lost their jobs. The same effect continues this year.
The Younger Ones Are in a Fix with No JobIt is really pathetic but the younger population between 18 - 24 years because they have no jobs and this situation exists from last year. This year, the conditions have changed a bit for good reasons, but the circumstances are still tense. The physical-distancing affected negatively, and the young ones had to face significant financial issues, and this year, the situations are changing at a slow pace. This part of the population also includes Asian, Black and minority populations working on low wage lost their jobs.
The furlough scheme helped a lot but it needs to continueThe furlough scheme by the Government helped keep a control on the rise of the unemployment rate. The employers from the most affected industries expressed their incapability to pay to their employees. It was only the furlough scheme that helped them keep their workers without making them redundant. In the month of November, the scheme was extended up to spring. Now it needs to extend more beyond April because the new jobs are coming in the market, but not as much as expected. This is obvious because as compared to the scale of the loss, which is huge, the revival efforts will look dwarf for some more time. FACT CHECK -
- In furloughed income the Government pays the majority part of the salary of the employees of a company to help employers retain their workers.
- The Government has given the wages of around 10 million employees of above 1.2 million companies since the pandemic circumstances emerged.
Millions depend on out-of-work benefits
|Applicants for out-of-work benefits in March 2020||Applicants for out-of-work benefits in January 2021|
|1.4 million People were seeking help through job seekers allowance or through universal credit.||2.6 million People are looking for the same sort of help to fight unemployment and money crisis.|