UK unemployment predicted to hit nearly three million by Christmas
Experts warn that new jobs support scheme will not halt job losses as ‘tough’ winter looms
Almost three million people in the UK may be unemployed by Christmas as up to 1.5 million more jobs face the axe in the run-up to the festive season, two leading think tanks are warning.
With Covid-19 still “battering the economy” and the government’s Coronavirus Job Retention Scheme coming to an end on 31 October, more companies will be forced to lay off staff, says The Guardian. The predicted “surge in unemployment” would drive the unemployment rate above 8% for the first time in almost a decade, the newspaper adds.
The latest study from the Centre for Economics and Business Research (CEBR) found that UK businesses are planning to lay off more than a third (35%) of furloughed workers after the scheme ends this month - equivalent to 1.2 million staff.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
And a further 300,000 jobs are also at risk, according to the think tank, which is echoing Chancellor Rishi Sunak’s warning of a “tough” winter ahead.
The CEBR agrees that “as the chancellor said, he can’t be expected to save every job throughout the crisis and a readjustment of the economy will be required”.
But “as hopes for an early return to normal recede and it indeed looks like some businesses in Covid hotspots will need to close in the coming weeks and month, the chancellor needs to act now despite the fiscal cost”, the economies consultancy adds.
The Institute of Public Policy Research (IPPR) is also warning of major job losses to come.
The think tank believes that the government’s new Job Support Scheme (JSS) “will do little to halt rising unemployment”, The Times reports.
The IPPR says that almost two-thirds of the three million people presently on furlough had been working in “viable” roles - jobs that are likely to become available again once Covid-19 restrictions are lifted.
But “we find that the new schemes will only save 230,000 of these jobs. As such, 1.8 million viable jobs which could otherwise be preserved will be lost, at great individual and wider economic cost,” the experts predict.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Mike Starling is the digital features editor at The Week, where he writes content and edits the Arts & Life and Sport website sections and the Food & Drink and Travel newsletters. He started his career in 2001 in Gloucestershire as a sports reporter and sub-editor and has held various roles as a writer and editor at news, travel and B2B publications. He has spoken at a number of sports business conferences and also worked as a consultant creating sports travel content for tourism boards. International experience includes spells living and working in Dubai, UAE; Brisbane, Australia; and Beirut, Lebanon.
-
Who actually needs life insurance?
The Explainer If you have kids or are worried about passing on debt, the added security may be worth it
By Becca Stanek, The Week US Published
-
Sexual wellness trends to know, from products and therapies to retreats and hotels
The Week Recommends Talking about pleasure and sexual health is becoming less taboo
By Theara Coleman, The Week US Published
-
Is the AI bubble deflating?
Today's Big Question Growing skepticism and high costs prompt reconsideration
By Joel Mathis, The Week US Published
-
The birth of the weekend: how workers won two days off
The Explainer Since the 1960s, there has been talk of a four-day-week, and post-pandemic work patterns have strengthened those calls
By Chas Newkey-Burden, The Week UK Published
-
2023: the year of rising child labor
The Explainer Because of a tight job market, some employers broke rules to find cheap child labor
By Harold Maass, The Week US Published
-
The nightmare before Christmas: is the party over for the office festive do?
Talking Point Seasonal cheer and morale-boosting benefits under threat from economic woes and employee disinterest – or dread
By Harriet Marsden, The Week UK Last updated
-
The jobs most and least at risk of being replaced by AI
Under the Radar AI could affect roughly 300 million full-time jobs if it reaches its full potential
By Keumars Afifi-Sabet Published
-
Britain’s missing workers
In Depth A large number of working-aged people are ‘economically inactive’ and putting a strain on the UK workforce
By The Week Staff Last updated
-
The pros and cons of a four-day working week
Pros and Cons Think-tank says shift in working patterns could help alleviate the cost-of-living crisis
By The Week Staff Published
-
What is ‘quiet quitting’?
In Depth Movement centred around doing bare minimum at work has been gaining traction on TikTok
By Kate Samuelson Published
-
Should the UK introduce a maximum working temperature?
Today's Big Question Workers will suffer as UK heatwave is forecast to hit 35 degrees next week
By Richard Windsor Published