The UK’s Furlough Scheme, which employs millions of private sector workers during the Corona virus epidemic, ended on Thursday, with forecasts of rising unemployment and declining living standards.
Prime Minister Boris Johnson’s Conservative government has almost paid the maximum wages to staff trapped at home. It has spent 70 70 billion (96 96 billion, 82 billion euros), which has helped keep the government’s unemployment rate relatively low.
“Despite this success, major challenges remain in the labor market,” the Institute for Financial Studies (IFS) said in a report on Thursday.
It included “low re-employment rates for the unemployed.”
The UK economy grew stronger than expected in the second quarter, official data showed on Thursday.
However, separate indicators point to a slowdown in growth as the country struggles with supply chain disruptions and global inflationary pressures that have pushed fuel prices sharply.
And while “Farlow was a lifeline for many … it acted like a curtain, hiding the true picture of jobs,” noted Danny Hewson, a financial analyst at AJ Bell.
“There will be a lot of employers who hope that Friday will finally bring the expected flood of workers back to market but in reality, no one really knows for sure how many of them are still listed on Ferlo … Jobs . “
About 12 million people were laid off during the 18-month scheme, with about one million workers helping by the end.
Of the rest, more than 25% work in construction and manufacturing.
The IFS cited the fact that “these people are suffering from a permanently low standard of living,” citing the fact that many people are the only paid adults in their household. Were
The IFS added that by the end of the scheme, those most affected will include Londoners and elderly workers.
Although 14 per cent of all UK employees working in the UK capital, about 20 per cent of those accessing the scheme in July.
Daniel Tomlinson, a senior economist at the Resolution Foundation think tank, said the emergency jobs package “initially helped young workers fight the epidemic …
Tomlinson added that the government’s plan to complicate the situation would be to increase the benefits of unemployment during epidemics by 20 per week.
He argued that in the midst of high inflation in the UK due to rising energy prices, “universal credit cuts … would bring the real cost of unemployment benefits to their lowest level since the early 1990s. “
A new government scheme of 500 500 million to help vulnerable families in the winter has been sharply criticized by charities.
“Millions of low-income families do not come close to meeting the scale of the challenge because of the cost crisis and our inadequate social security (benefits) system,” said Helen Bernard, deputy. Director of the Joseph Rowntry Foundation
Finance Minister Rishi Sink defended the termination of his furlough project.
“The (economic) recovery is well underway, and with more than a million jobs created, now is the right time to end this scheme,” he said in a statement on Thursday.
Paul Dells, an analyst at Capital Economics, said “the end of the Furlough scheme could help address the current UK labor shortage”.
“It may not be immediate, but some of those who have been placed on furlough and who will lose their jobs will look free and start working elsewhere,” he told AFP. Will. “
Staff shortages have been caused by the global health crisis and the Brexit, which has left many foreign workers.
The UK unemployment rate is 4.6 per cent, down from 5.2 per cent at the end of last year.
At the same time, a significant shortage of lorry drivers is reducing the number of goods in stores, while motorcycles are panicking at petrol stations.
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