Official data published on Tuesday has shown unemployment rates in the UK to rise to 4.1%
As the toll of the pandemic is taking a hit, unemployment between May to July climbed by 0.2% from the three months previous.
The Office for National Statistics said that numbers will continue to increase as the government’s furlough scheme comes to an end in October.
“Some effects of the pandemic on the labour market were beginning to unwind in July as parts of the economy reopened,” said Darren Morgan, director of ecnomic statistics at the ONS.
“Nonetheless, with the number of employees on the payroll down again in August and both unemployment and redundancies sharply up in July, it is clear that coronavirus is still having a big impact on the world of work,” he added.
Commenting on the unemployment results, Rishi Sunak said: “This is a difficult time for many as the pandemic continues to have a profound impact on people’s jobs and livelihoods.”
“That’s why protecting jobs and helping people back into work continues to be my number one priority,” added Sunak.
As the furlough scheme is due to end on 31st October, many MP’s and businesses are calling on the government to extend the scheme.
“The key will be assisting those businesses who, with additional support, can come through the crisis as sustainable enterprises, rather than focusing on those that will unfortunately just not be viable in the changed post-crisis economy,” said Mel Stride, chairman of the scheme.
When the scheme ends, there is likely to be another surge in unemployment.