Under-25s hardest hit by Covid-19 job losses, ONS figures show

Between February 2020 and January 2021, the number of payrolled employees decreased by 726,000 in the UK, the ONS states, adding that 425,000 of those to have lost their jobs are aged under 25 - the equivalent of 58.5 per cent.

• Analysis: Schemes set up to help young people find work

• Blog: Five reasons to extend Kickstart

• Blog: Supporting our young people during difficult times

The accommodation and food services sector, which traditionally employers young people, saw the smallest increase of payrolled employees across all sectors with an increase of around 345,000,

Meanwhile, the health and social care sector saw the largest increase in payrolled employees (104,000).

However, in January, 83,000 people secured payrolled employment, figures show.

The UK's unemployment rate rose to 5.1 per cent in the three months to December, the ONS said, the highest for almost five years.

Overall, 1.74 million people were unemployed in the October to December period, up 454,000 from the same quarter in 2019.

Campaigners have called on Chancellor of the Exchequer Rishi Sunak to boost funding for youth training and employment in next week’s Budget.

Nye Cominetti, senior economist at the Resolution Foundation, said: “Unemployment continued to rise at the end of 2020. However, the renewed lockdown in January has had only a muted effect on employment, as firms have adapted and the furlough scheme has kept people in their jobs.

“But the sheer longevity of the crisis is taking its toll on firms, and young people in particular who have borne the brunt of jobs losses.

“The Chancellor will need to address this in next week’s Budget by both extending emergency support to firms while restrictions are still with us, and announcing fresh stimulus to power Britain’s economic recovery.”