Nearly a third of companies are preparing to lay off staff, according to a devastating report, while Boris Johnson is preparing to cut home work counseling and send millions back to the office.
The threat of mass layoffs in the report anticipates figures that are expected to show the greatest fall in employment since the 1980s as the true economic costs of the coronavirus pandemic arise.
It is feared that the miserable economic situation will be exacerbated by millions of workers staying at home – in accordance with official government guidelines – meaning newly reopened shops and restaurants will suffer from low visitor numbers.
Boris Johnson will use a press conference on Friday to beg British to go back to the office and reveal his roadmap for emerging from a lockdown to boost the economy and get money back on High Street, as reported by The Sun.
Currently, more than a million businesses request support from taxpayers through the Job Retention Scheme, which pays the wages of 9.4 million workers.
The recently released survey of 7,400 companies by the British Chambers of Commerce (BCC) found that nearly three in ten expect to reduce their workforce before the leave scheme ends in October. A similar proportion (28 percent) have fired staff since closing began.
Boris Johnson will use a press conference on Friday to beg British to go back to the office and reveal his roadmap for emerging from the lockdown, as the fears of a second wave of the deadly pandemic are balanced
The ongoing economic slump prompted the Prime Minister to unveil his new ‘Contain Framework’ on Friday, which is designed to show workers that the virus in their environment is under control.
We hope this will lure people back into the office, in addition to the ‘whack-a-mole’ strategy, where they will look into additional measures to try to avoid a dreaded second wave of the deadly disease.
This includes a new rating system when it is safe to travel. The public will still be urged to use public transport between 9 am-4pm instead of rush hour. And cycling or walking if possible.
A Whitehall source told The Sun, “We’re looking at the posts – it’s going to be looking at judging the times people travel.
‘There is a lot of extra capacity on public transport that is not being used.
“People will be told that if you avoid rush hour, the crowds, it’s safe to travel.”
Chancellor Rishi Sunak wears mask while buying lunch in Pret
The UK Chamber of Commerce report also stated that job prospects at companies with 10 or more employees are worse, with more than four in ten expecting layoffs in the next three months.
British economy ready for recovery ‘incompletely V-shaped,’ says Bank of England expert
The UK economy is on the verge of an “incomplete V-shaped” recovery from the coronavirus crisis, with a downturn likely to end towards the end of 2020 due to rising unemployment, according to a Bank of England policy maker.
Bank interest counter Silvana Tenreyro said that an expected increase in the number of people out of work, likely caused by the loss of government support in the coming months, will slow down consumer spending.
Meanwhile, persistent social distancing in key areas of the economy, such as the hospitality industry, and the persistent fears of the corona virus that might prevent some customers from returning to the high street could also stunt growth.
Ms. Tenreyro predicted an “interrupted” or “incomplete” V-shaped recovery as an initial recovery in activity declines by the end of the year.
When asked by Prime Minister yesterday, Boris Johnson said he cannot wave a “magic wand” to save millions of jobs threatened by the corona virus.
Capital Economics expects today’s Office for National Statistics report to show that around 210,000 people lost their jobs in May, the biggest peak since the recession in the mid-1980s.
The report – prepared in conjunction with Totaljobs – found that recruitment also stalled, with only 25% of companies hiring new hires in another grim record for the report.
The numbers come amid mounting fears of mass unemployment as companies shed staff to cope with the consequences of the Covid-19 crisis.
Bank of England Governor Andrew Bailey has already prepared a three-point plan to strengthen the economy, as reported by The Daily Telegraph.
Mister Bailey is said to be shocked by abandoned cities and city centers and fears they will hold back the economy.
He has urged the government to start lifting the remaining restrictions, to get people back on public transport and to get people back to work – he warns that the country has “been in a recession will go if it doesn’t record its words.
Johnson is expected to ask officials to take the lead in physically returning to work to set an example for the nation.
A majority of officials have worked from home during the coronavirus crisis, but Whitehall’s departments are now preparing Covid risk assessments to determine how much staff can physically return.
The BCC welcomed the announcements from Chancellor Rishi Sunak in last week’s summer statement, including a job retention bonus, giving companies £ 1,000 for every leave employee they put back to work.
People on the Central Line on London underground on Wednesday morning
Hannah Essex, co-executive director at British Chambers of Commerce, said the government should “consider additional support for employers before the fall budget to cut overall labor costs and avoid significant layoffs”
He also revealed a Kickstart scheme and a curriculum recovery program to help strengthen the job market.
Boris Johnson admits jobs will be lost after OBR watchdog warns 4 million may be queued next year
Boris Johnson insisted he doesn’t have a “magic wand” today to save jobs as he admitted a wave of layoffs looming.
The prime minister said “no one should underestimate the challenges” the UK is facing after the government watchdog warned that four million people could be queued next year.
A gruesome assessment by the Office for Budget Responsibility yesterday also suggested that government debt will increase by around £ 700 billion over the next five years as a result of the corona virus crisis.
Pressured by Sir Keir Starmer on PMQs about what he would do to support companies struggling to survive, Mr. Johnson emphasized the tremendous support provided by the state.
But he said, “I fear we can’t just use a magic wand to ensure that all work done before the crisis is preserved after the crisis.”
Sir Keir also wanted to know what ministers were doing to prepare for a second peak of coronavirus in the fall.
The prime minister fired back: “Not only will we continue to prepare for a potential new peak, but he will know that the government is making record investments in the NHS.”
But the BCC and Totaljobs urged him to take more action and called for a temporary cut in national insurance premiums to help protect businesses and jobs.
Hannah Essex, co-executive director at BCC, said, “Many companies are suffering from a historic money crisis and reduced demand, meaning companies are still facing difficult decisions despite welcome interventions in the summer statement.
“The government should consider additional support for employers before the fall budget to reduce overall labor costs and avoid significant layoffs.”
She also said the government could consider support for “retraining and retraining” workers, as companies adapt to changing practices after the shutdown.
According to recent analysis by the PA news agency, more than 150,000 jobs have already been cut or jeopardized by more than 60 major UK employers.
In total, about 75,000 job losses were announced last month alone.
The Office for Budget Responsibility said on Tuesday that Britain could face an unemployment rate as high as 13%, now just under 4%.
But there are some tentative signs of recovery, according to Totaljobs, who saw a 30% monthly increase in the number of roles advertised on its website in June.
Sectors that benefited from easing lockdown restrictions saw a large increase in job vacancies – a 51% increase in retail, 47% for travel and 23% for hospitality.
A government spokeswoman said: “During the pandemic, we have acted swiftly to secure jobs and income, so far with a support package totaling £ 160 billion.
“The job plan announced last week, including the Job Retention Bonus and the new Kickstart scheme, will give companies the confidence to retain and hire and create new jobs in every part of our country.”