As the unemployment rate continues to explode in the United Kingdom, the Office for National Statistics (ONS) published a study on Monday that gives a glimpse of hope. For the first time since the onset of the health crisis, the unemployment rate is falling. It declined slightly to 5%, representing 1.7 million people in the last quarter of 2020. It was 5.1% in the previous quarter. The decline seems minimal at first glance but not trivial as economists on their part forecast growth of 5.2% for the same period.
However, the data are mixed, with many students who have lost their jobs not registered as unemployed. This has the effect of reducing the overall participation rate to 79% since August 2019, the lowest level since August 2019. “It is proving to be a disaster for youth who now account for about two-thirds of the employment decline and have not participated in the recent increase,” said Tony Wilson, director of the Institute for Employment Studies.
Partial unemployment measures introduced by sage Sunak cushion the attack of Kovid-19
Thanks to the funds by the Chancellor of the Treasury, 80% of the normal salaries of 5 million workers are assumed by the government after their incapacity for work. From the first imprisonment in April 2020, this is partly thanks to the aid that there is no further explosion of unemployment.
Suren Thieru, head of the British Chamber of Commerce’s economy, states that “expansion of measures will limit the extent of job losses.” However, with many businesses facing a one-year loss of sanctions due to Kovid, unemployment will likely remain on a full trajectory until the economy is beyond full reopening ”.
Extended to next September, the “furlough plan” should limit the economic losses of the epidemic as much as possible. If the situation continues, unemployment should increase to 6.5% at the end of the device, as predicted by the Office for Budget Responsibility by the end of this year. The results are therefore mixed, but the government has announced that it will “continue to support citizens in the coming months”.
To not miss any London news, subscribe to our newsletter in two clicks!