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UK unemployment rises to 5.1% as Covid lockdown freezes economy

Government’s furlough scheme prevents higher increase in joblessness in December
Unemployment edged higher to 5.1% in December as the government’s furlough scheme continued to prevent a steep rise in job losses in the run-up to Christmas. UK unemployment
With much of economy still in enforced hibernation, the unemployment rate in the three months to December increased from 5% in November and was up by 1.5 percentage points from a year earlier according to the Office for National Statistics.
More recent figures from HM Revenue & Customs for January showed that there were 726,000 fewer people on company payrolls in January compared with February 2020, before the pandemic.
But the same assessment by HMRC also found that despite the onset of the third lockdown, firms brought back some employees into full-time employment for the second consecutive month.
About 83,000 more people were put back on to company payrolls compared with December 2020, HMRC said.
The recent rise in payrolls is believed to be the result of companies bringing back staff from furlough, though millions of workers remain on the government subsidy scheme while their jobs are mothballed. UK unemployment
More than 1 million self-employed people are also understood to be without work, many of them not eligible for state support.
A report by the London School of Economics last month found that one in seven businesses – employing 2.5 million people – might be forced to close by the spring without further support from the Treasury.
Rishi Sunak is expected to extend much of the support on offer to workers affected by the pandemic, but is unlikely to expand the scope of benefits to include all self-employed people.
Tej Parikh, the chief economist at the Institute of Directors, said: “As the pandemic lingers, jobs losses have continued to tick upward.
“Tight restrictions over the winter months will have eaten into many businesses’ reserves, forcing them into difficult decisions on their staff. Meanwhile, cash-strapped firms have relied on the furlough scheme to help retain employees, and without it unemployment would be significantly higher.” UK unemployment
source: Phillip Inman
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BENEFIT Sponsors BuildHer...
- April 23, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has sponsored the BuildHer CityHack 2025 Hackathon, a two-day event spearheaded by the College of Engineering and Technology at the Royal University for Women (RUW).
Aimed at secondary school students, the event brought together a distinguished group of academic professionals and technology experts to mentor and inspire young participants.
More than 100 high school students from across the Kingdom of Bahrain took part in the hackathon, which featured an intensive programme of training workshops and hands-on sessions. These activities were tailored to enhance participants’ critical thinking, collaborative problem-solving, and team-building capabilities, while also encouraging the development of practical and sustainable solutions to contemporary challenges using modern technological tools.
BENEFIT’s Chief Executive Mr. Abdulwahed AlJanahi, commented: “Our support for this educational hackathon reflects our long-term strategic vision to nurture the talents of emerging national youth and empower the next generation of accomplished female leaders in technology. By fostering creativity and innovation, we aim to contribute meaningfully to Bahrain’s comprehensive development goals and align with the aspirations outlined in the Kingdom’s Vision 2030—an ambition in which BENEFIT plays a central role.”
Professor Riyadh Yousif Hamzah, President of the Royal University for Women, commented: “This initiative reflects our commitment to advancing women in STEM fields. We're cultivating a generation of creative, solution-driven female leaders who will drive national development. Our partnership with BENEFIT exemplifies the powerful synergy between academia and private sector in supporting educational innovation.”
Hanan Abdulla Hasan, Senior Manager, PR & Communication at BENEFIT, said: “We are honoured to collaborate with RUW in supporting this remarkable technology-focused event. It highlights our commitment to social responsibility, and our ongoing efforts to enhance the digital and innovation capabilities of young Bahraini women and foster their ability to harness technological tools in the service of a smarter, more sustainable future.”
For his part, Dr. Humam ElAgha, Acting Dean of the College of Engineering and Technology at the University, said: “BuildHer CityHack 2025 embodies our hands-on approach to education. By tackling real-world problems through creative thinking and sustainable solutions, we're preparing women to thrive in the knowledge economy – a cornerstone of the University's vision.”
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