Unemployment in the UK is likely to double by the end of 2020

Unemployment in the UK is likely to double by the end of 2020

During the three-month period to July 2020, the country’s unemployed population rose 104,000 to 1.4 million, bringing the unemployment rate by 0.2 percentage points to 4.1%. .

The UK industry industry may see a gap at the end of the year 2020 picture 1
Unemployment in the UK increased. (Source: hucknalldispatch)

Unemployment rate in UK increased sharply in July 2020, although most of the country’s economy reopened after a period of blockade to prevent the spread of the COVID-19 pandemic.

This is a sign of the risk that the UK unemployment rate could increase more strongly in the coming time, when the Government’s salary support plan ends in the fall.

Specifically, according to official data from the British Government, in the three-month period to July 2020, the number of unemployed people in this country increased by 104,000 to 1.4 million, thereby increasing the unemployment rate. industry added 0.2 percentage points to 4.1%, the strongest increase since pandemic COVID-19 outbreak.

Unemployment increased even as the hotel restaurant sector in the UK reopened in early July 2020, after shops selling items that were considered non-essential such as clothing and books. , is resumed operation.

The reopening of key industries in the economy makes sense for a lot of people (about 2 million) because they can return to work months after having to take a break from work at home due to a commune blockade. on a large scale, nearly paralyzing the economy.

To prevent a sudden spike in unemployment when the blockade was announced, the British government introduced a Job Maintenance Plan, which would pay the majority of the salaries of those named in Business payrolls were affected by the COVID-19 translation, rather than making them lose their jobs.

Analysts fear that the UK unemployment rate will start to increase more markedly in the coming months as the financial bailout package is being used by more than a million companies to keep nearly 10 million employees working. , will end on October 31st.

Data shows that some companies started layoffs before the program ended. About 36,000 workers had to leave private businesses in August 2020, bringing the number of layoffs to 695,000 since Britain imposed the blockade in March, the UK Statistics Service said.

Debapratim De, senior economist at Deloitte, said the job-support program has been very effective in reducing the “blow” from the pandemic on the labor market, but uncertainties are beginning to emerge, with the unemployment rate rising, especially among young workers, and labor surplus at its highest level in nearly eight years.

Most economists think the UK unemployment rate could double by the end of 2020, to around 8% when businesses cannot retain all the workers still on the table. salary.

When many sectors of the economy were unable to return to normal business due to social gap requirements still in place, many businesses called for further government assistance after the program supported. job expired.

Currently, the British Government has announced a number of incentives for businesses committed not to lay off workers./.

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