United Kingdom: Corona-crisis costs 730.000 jobs

The Corona-crisis on the labour market in the UK, a deep mark, even if the unemployment rate in superficial examination appears favorable. In July, 730.000 peop

United Kingdom: Corona-crisis costs 730.000 jobs

The Corona-crisis on the labour market in the UK, a deep mark, even if the unemployment rate in superficial examination appears favorable. In July, 730.000 people had less employment in companies as in March, the latest data from the statistical office, ONS. In addition, more than 7 million employees not currently in the Job, including the forced leave.

Philip Plickert

economic correspondent based in London.

F. A. Z.

According to the ONS, especially the very young and older Workers as well as people in simple activities. The working volume is broke on the peak of the crisis in the second quarter, literally. "These data show the devastating traces of the Coronavirus crisis on the labour market," said Matthew Percival of the business Association, the CBI.

support for 9.6 million employees

The officially calculated unemployment rate remained, however, at 3.9 percent in June. This is because many companies wait with redundancies and staff instead of taking a leave of absence. A massive programme of support, the state furloughed the Forced four-fifths of the salary, to a maximum of 2500 pounds (about 2750 Euro) pays helps. According to the latest data from the Treasury a total of 9.6 million employees are currently getting money from this program, in addition, 2.7 million received Independent financial support.

the Minister of Finance Rishi Sunak appreciated the new Figures as evidence of the success of the policy support programmes. "Today's labour market figures make it clear that our unprecedented support measures are working, and millions of Jobs and Lives have to protect, which would otherwise be lost", let Sunak tell. "I have always said clearly that we cannot protect every Job," he added, but you have a Plan, that "no one will be left without hope".

unemployment is expected to rise

If the utility program is due to expire in October, the number of unemployed will rise considerably. The Central Bank estimates that by the end of the year is about 7.5 per cent of Britons will be unemployed, some institutes expect even more job losses. The National Institute of Economic and Social Research (NIESR) expects 10 percent unemployment at the end of the year.

On Tuesday, the trade Union Confederation TUC Sunak called on once again to extend the state aid program. "The alarm bells could not ring any louder," says TUC General Secretary Frances O'grady. The government needs to act now and Jobs to protect and create. The liberal Institute of Economic Affairs refers to the high cost of the programs, which amount to more than 40 billion pounds, and warned that the state could not subsidize permanently health, and no longer want to Finance the company or can.

Updated Date: 11 August 2020, 20:19

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