SOURCE: BBC

The UK's unemployment rate rose to 5% in the three months to November, up from 4.9%, as coronavirus continued to hit the jobs market.

Some 1.72 million were out of work, the Office for National Statistics said, the highest level in five years.

That was 418,000 more than in the same period the previous year, the biggest increase since late 2009.

The hospitality industry was worst hit by the rise in joblessness, followed by manufacturing.

In both sectors, the number of people unemployed was up by more than 50,000 on the previous year.

ONS deputy chief executive Sam Beckett told the BBC that the UK had not seen such rises in unemployment since the global financial crisis.

"Payroll numbers show the number of workers on payroll have fallen by over 828,000 since the pandemic began," she added.

Employment was still at "relatively high levels" compared to other countries, Ms Beckett said, but workers aged 16 to 24 were suffering some of the biggest falls in employment.

However, she added: "We've currently got over 4.5 million people on the furlough scheme, so that does complicate the picture when you're trying to interpret what's going on in the labour market."

Jobs 'tragedy'

Redundancies rose to a record high of 14.2 per 1,000 people.

The redundancy rate was highest for those aged 25 to 34 years, the ONS said.

However, job vacancies also rose, with 81,000 new openings reported in the three months.

"This crisis has gone on far longer than any of us hoped - and every job lost as a result is a tragedy," said Chancellor Rishi Sunak.

"Whilst the NHS is working hard to protect people with the vaccine, we're throwing everything we've got at supporting businesses, individuals and families.

"Our Plan for Jobs includes grants and loans so that firms can keep employees on, the furlough scheme to help protect jobs, and programmes like Kickstart alongside record investment in skills so that people can find their first job, their next job or a new job if needed."

Furlough scheme

With no end in sight to the current lockdown measures, many firms fear that they may not be able to survive the pandemic, with pubs and restaurants bearing the brunt of the restrictions.

"The pandemic continues to rip through the labour market," said Tej Parikh, chief economist at the Institute of Directors.

"A return to tighter restrictions late last year will have stretched businesses' ability to retain staff. Meanwhile, the furlough scheme will have provided an invaluable cushion for many firms, preventing unemployment from edging up even further."

It is "crucial" for the chancellor to extend the furlough scheme and other Covid-19 economic support beyond the spring, he said.

"The forthcoming Budget is a vital moment to help firms retain, retrain and rehire workers as the vaccine rolls out. In particular, the government should provide a relief for employers' National Insurance contributions and support reskilling opportunities to shore up the recovery."