The rate of unemployment in Northamptonshire as third coronavirus lockdown takes hold

'The pandemic continues to rip through the labour market'
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Coronavirus continued to have a big impact on jobs in Northamptonshire as the unemployment rate increased by more than 40 per cent in the year up to September.

The county's unemployment rate was 4.1 per cent from October 2019 to September 2020, an increase of 1.3 per cent from the previous 12 months.

Some 16,300 people were without work in Northamptonshire, 72,037 16-64 year-olds were 'economically inactive' and 394,326 were employed, according to the Office for National Statistics (ONS).

The high street has been particularly affected by the coronavirus pandemicThe high street has been particularly affected by the coronavirus pandemic
The high street has been particularly affected by the coronavirus pandemic

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

"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."

The ONS data shows Northampton was the 'worst' area for unemployment in the county, at five per cent, and South Northamptonshire was the 'best', at 2.3 per cent.

The local authority figures for the latest whole quarter, September to November, are not available but the East Midlands unemployment rate was 5.6 per cent, a 1.7 per cent increase from the same period in 2019.

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

"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 now crucial that the Job Retention Scheme and other Covid-19 economic support is extended beyond the spring to support employment as restrictions continue.

"The latest lockdown will have only added further pressure on firms with troubled balance sheets, which means more jobs are likely to be lost in the coming months.

"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."