Redundancies Reach Record High During Third Quarter

Written by: Keith Tully

Businessman made redundant British companies let go of their employees at a record rate during the third quarter of this year as the coronavirus pandemic continued to take its toll.

Around 314,000 people were made redundant during the three months to the end of September, which is an unprecedented figure and roughly 181,000 more than lost their jobs during the second quarter of 2020.

According to the Office for National Statistics (ONS), the overall unemployment rate across the UK rose to 4.8 per cent in the third quarter, which is the highest level since late 2016.

The government has helped to protect employment throughout much of 2020 via its Coronavirus Job Retention Scheme, which allowed organisations to continue paying their staff even if they were unable to work.

However, chancellor Rishi Sunak announced over the summer that the scheme would be tapered off and eventually ended at the start of November.

More recently, the chancellor revealed that a new job retention scheme was to be introduced until March 2021, with potentially millions of people set to see their wages once more covered by the Treasury.

Between July and September though employers were grappling with the prospect of seeing the job retention scheme closed while the pandemic remained very much an ongoing problem and a huge operational challenge.

“Unemployment grew sharply in the three months to September, with many of those who lost their jobs earlier in the pandemic beginning to look for work again,” said Jonathan Athow, the ONS’ deputy national statistician for economic statistics.

“Vacancies continued to recover from the very low numbers seen earlier in the year,” he added. “However, these figures predate the reintroduction of restrictions in many parts of the UK.”

Rishi Sunak responded to the figures by suggesting they “underline the scale of the challenge we’re facing”.

“I know that this is a tough time for those who have sadly already lost their jobs,” he said, “and I want to reassure anyone that is worried about the coming winter months that we will continue to support those affected and protect the lives and livelihoods of people across this country”.

Keith Tully

Keith Tully

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY