Covid: Nearly 500,000 redundancies planned since crisis began - BBC News


The cost of covid nineteen to business appears be racking up day by day with data revealed exclusively to the BBC showing the pandemic has led to half a million planned redundancies in the UK since March more broadly in Europe countries in the euro-zone reported last month a total of five point one million. Lost in twenty twenty so far it's the steepest fall in employment since records began in Nineteen ninety-five Simon French is chief economist at Pamela. Gordon will the current UK unemployment rate is four point one percent, and that has stayed remarkably low in the first few months of the pandemic partly because of the Sports Games, that job retention scheme in particular which its height supported the jobs of more than eight million workers. But a spike up to double digit unemployment right is nothing conceivable I don't think it actually will go that high. I think it's more likely to be high single digits but that's still as spike of numbers terms probably a million, two, million half additional people who are either unemployed or underemployed, and now will be a real headwind to growth not just in twenty twenty one. But I think for a couple of years thereafter and the quandary. The finance minister is in hair in the K. as how he's going to pay for various keen to try and stimulate employment hasn't said he'd Montebello the Ozzie. Nelson facing a fiscal deficit of about fifteen percent of GDP this year and she snack funds ministry nut tree fiscally conservative is stated in the last few days that he would like to balance the books over the medium-term. There are constraints in how he can go about doing this without breaking promises that he and his taunt made the UK electric back in December twenty nineteen namely not to raise the major tax in the. The other parts, the ledger, of course, spending cuts. UK has seen quite significant public sector spending cuts over the last decade. That the electorate quite fatigue for that. So no easy choices for she said. Simon French chief economist at Panya Gordon Thank you very much. Thank you.

Coming up next