• Privacy policy
  • T&C’s
  • About Us
    • FAQ
    • Meet the Team
  • Contact us
TLE ONLINE SHOP!
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
No Result
View All Result
The London Economic
No Result
View All Result
Home Business and Economics

Furlough scheme could come back to haunt government as jobs crisis looms

Millions of people could currently be in 'zombie jobs', in that they require ad hoc policies to avoid postponed mass unemployment.

Jack Peat by Jack Peat
2020-06-29 10:07
in Business and Economics
FacebookTwitterLinkedinEmailWhatsapp

An imminent jobs crisis could be in our midst as businesses come off life support and are re-released into a fragile economic environment.

Some 9.1 million people have currently been placed on a job retention scheme in the United Kingdom, accounting for one in four workers overall.

But come September when the tap gets turned off and businesses restart after a period of hibernation a quarter of those could be made redundant.

Redundancies

A survey of over 2,000 businesses in the UK found that 45 per cent of firms will likely have just half their furloughed staff back in work in July, while a quarter are likely to be kept on furlough as part of the extended scheme.

The remaining quarter of furloughed staff could “well be made redundant”, warned the report by lender Marketfinance.

Allianz, which has conducted similar research of the rest of Europe, has described these state-supported positions ‘zombie jobs’, in that they require ad hoc policies to avoid postponed mass unemployment.

They estimate that 9 million workers or 20 per cent of those currently enrolled in short-work schemes across Europe face an elevated risk of becoming unemployed in 2021 because of the muted recovery in late bloomer sectors and the policy cliff effect.

RelatedPosts

McDonald’s to leave Russia as Greenpeace blocks tanker carrying Putin’s diesel to UK

‘Sometimes, reality bites’: Brexit has worsened the cost of living crisis

What cost of living crisis? Huge pay packet of Tesco boss revealed

‘Historic’: Union hails recognition deal with food delivery giant Deliveroo

Rigidifying

In order to address this problem, governments should try to avoid “rigidifying” the labor market, chief economist Ludovic Subran said, and should instead, “try to top up with active labor market policies, focusing on intermediation and requalification for those sectors that are actually on life support right now.”

“Because if it is only about life support, then policymakers have to budget it for all the way to mid-2021 or even end of 2021 and this is a very high bill to foot,” he added. 

Boris Johnson has promised an infrastructure spending blitz to revitalise the battered UK economy in the wake of the coronavirus pandemic.

The Prime Minister said he is preparing for an effort comparable to Franklin D Roosevelt’s New Deal following the Great Depression in the US in the 1930s.

As the first phase, the Government is setting out details of a major schools rebuilding and refurbishment programme.

Mr Johnson is expected to make further commitments in a keynote speech on Tuesday.

Related: MPs and senior ex-civil servants hit out after Cabinet Secretary ousted

Tags: headline

Since you are here

Since you are here, we wanted to ask for your help.

Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.

Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.

If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.

To donate or subscribe to The London Economic, click here.

The TLE shop is also now open, with all profits going to supporting our work.

The shop can be found here.

You can also SUBSCRIBE TO OUR NEWSLETTER .

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

Trending on TLE

  • All
  • trending
Abdollah

‘Rescue us’: Afghan teacher begs UK to help him escape Taliban

CHOMSKY: “If Corbyn had been elected, Britain would be pursuing a much more sane course”

What If We Got Rid Of Prisons?

More from TLE

Video – Astronomers have found smallest dwarf planet in our solar system

A&E waiting times in England at worst level since 2004

How To Make: Budgie Montoya’s Filipino Banana Ketchup

Morgan Freeman blessed by holy man in Nepal

Employed To Serve Announce Sophomore Album ‘The Warmth Of A Dying Sun’

Roast Restaurant has launched an ‘Ultimate Breakfast Burger’

Tory MP tells Steve Bray to f*ck off in shouty exchange

Review: Dim Sum Sundays at Hakkasan Hanway Place  

NFL Championship Games

Set For Life Results for Thursday 4 November 2021 Tonight’s winning numbers

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.




No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Meet the Team
    • Privacy policy
  • Contact us

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.