What could the UK jobs market look like after the furlough scheme comes to an end?
The Government’s Coronavirus Job Retention Scheme (CJRS)
The Government’s Coronavirus Job Retention Scheme (CJRS), was launched by the Government in March to protect people's jobs and help keep businesses steady. As the scheme is due to come to an end in October, what will that mean for the jobs market in the UK and the wider economy?
The idea behind the CJRS was to prevent business foreclosure and therefore mass job losses as a result of the pandemic. It has been reported by HMRC data that nearly 10 million workers have been furloughed since the scheme was introduced.
CJRS has recently come under fire as the UK faces the highest rate of unemployment in 2 years. The unemployment rate grew to 4.1% in the three months to July - compared with 3.9% previously - with young people being particularly hard hit.
According to a recent article in the Telegraph, around 700,000 job losses are predicted once the CJRS ends - the highest level of redundancies since the 1990s.
Leader of the Labour party, Sir Kier Starmer, is urging the Government to reconsider ending the scheme and instead replace it with an "open offer" plan that would give more flexibility to both employers and their workers, preventing mass unemployment.
The Chancellor, Rishi Sunak, has responded, saying that the Government will do all they can to help find and create jobs for people. Boris Johnson is also reluctant to extend the Scheme again, after it was pushed back from its original end date in June, as he feels it would keep people in permanently "suspended animation".
There's no doubt that as we all adjust to the "new normal" in the working world post-Covid, it will be interesting to see how the Government will help rebuild Britain's economy.
If you would like some advice relating to your own job, or you are an employer and would like some more information for your staff, contact Downs Solicitors to see how we can help.