The Weekly Brief
Global Market Insights Strategy Team
Participation in the UK furlough scheme has fallen from almost a third of workers in May to 10% in recent weeks
While this indicates many people are now back at work, some jobs are being lost too. Recent labour market data shows that in July the unemployment rate rose to 4.1%, while employees on payrolls are estimated to have fallen by around 700,000 since January. With the furlough scheme set to expire at the end of October, recent job losses highlight the risk that businesses may be forced to make further layoffs as they struggle to continue paying staff, with Covid-19 preventing a full rebound in revenues.
UK jobs may be at risk as the furlough scheme winds down
% of UK employee workforce on furlough, Apr 2020 – Sep 2020