Current labor market data are unlikely to reflect what the UK may have in store. With the end of government support, many people could lose their jobs.
London (dpa) - According to experts, Great Britain is facing a significant increase in unemployment this year as a result of the Corona crisis.
However, this is unlikely to be reflected in the official figures from the ONS (Office for National Statistics) for June, which will be published today.
So far, the country has cushioned the consequences of the pandemic with a program that is modeled on German short-time work, the Job Retention Scheme. A total of 9.6 million people benefited from being "furloughed", that is, from being exempted while the state paid. But this is now phased out until the end of October - with potentially drastic consequences for many employees.
Tony Wilson, director of the Institute for Employment Studies, fears the unemployment rate could soar to around 10 percent by the end of the year. The Bank of England estimates the situation with 7.5 percent at the end of the year a little more positive. Still, that would be a big jump from the 3.9 percent that were reported for May.
© dpa-infocom, dpa: 200811-99-119806 / 2
