Large companies in the UK already have more than 75,000 job cuts, with more partial shutdowns and social distancing expected in the summer months. Smaller companies are also crashing, adding hundreds of thousands of job losses to the total.
Data from the UK government have so far not covered the hundreds of thousands of jobs that are likely to be cut in April.
According to official data, the unemployment rate in the UK remained below 4% in March. But more timely indicators, which include April, give a sense of the impending job crisis. The number of workers in the companies’ salaries fell by more than 450,000 between March and April, government figures show.
The worst is almost certain.
Some 8.7 million workers in the UK have been worried as part of a program under which the government covers 80% of their salaries. But as support is phased out from August to the end of the program in October, and businesses face a slump in demand, companies may struggle to find work for many employees when they return.
“Business leaders know that government support cannot be endless, but the ugly truth is that if money does not come to the door, many companies will be forced to make difficult decisions coming in August,” said Jonathan Geldart, director general of the Institute. directors said late last month.
Andrew Wishart, a British economist at Capital Economics, wrote last month that he expects the unemployment rate to rise to 9% in the coming months. “Most of this jump needs to change quickly after the blockade is over, but we still expect unemployment to remain high over the next few years,” he said.