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25/09/2021

Furlough numbers fall by another 590,000 despite support from the UK government

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Furlough numbers declined by 590,000 last month, yet the government continues to support 1.9 million jobs. With the next level of the scheme’s support being withdrawn this weekend, the decline in earnings being insured by the scheme became apparent.

In June, 1.9 million jobs were covered, down from 2.4 million the month before. As people returned to part-time jobs, the number of people on full vacation fell from 1.23 million to 970,000. Despite the UK’s robust economic recovery, there are fears that hundreds of thousands of jobs in the UK may be lost if the arrangements are scrapped entirely.

The furlough numbers for June are the most recent in a series of shifts in the load from the Treasury to businesses. Employers must now cover 10% of their employees’ salary this month, while the government’s share has been reduced from 80% to 70%.

Employers will receive 20%, and the government will receive 60% starting on Sunday, with the programme set to finish in September. Since January, when 5.1 million workers were furloughed, the number of personnel on furlough has been declining. The Government scheme guaranteed them 80% of their salary, up to a monthly maximum of £2,500. In July, however, more than one out of every four people.

Around 58 percent of airline jobs in the United Kingdom are still being furloughed. Many individuals are still on furlough at travel companies and tour operators and photographers, and artists.

Chancellor Rishi Sunak said: ‘It’s fantastic to see businesses across the UK open, employees returning to work and the numbers of furloughed jobs falling to their lowest levels since the scheme began. ‘I’m proud our plan for jobs is working, and our support will continue in the months ahead.’

Charlie McCurdy, an economist at the Resolution Foundation, said: ‘The number of furloughed employees has fallen below two million for the first time as the economy continues to reopen. But that is higher than many expected and a cause for concern as the scheme is wound down.

He adds,’ With employer contributions to furloughed staff doubling from this Sunday, and the scheme ending completely in just two months, it’s vital that as many furloughed staff as possible return to work soon, to limit to unemployment this Autumn.’

Throughout much of the pandemic, young individuals were the most likely to be on furlough, but that changed in June when they exited the plan twice as quickly as all other age groups. In total, 600,000 people under the age of 25 were either rehired or laid off. Furlough rates for employees over 65 are now the highest of any age group.

Source: DailyMail

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