In the wake of the coronavirus crisis, a number of companies across the UK plan to lay off workers in the upcoming months.
About one-third of companies in the country intends to make job cuts in the next three months. The British Chambers of Commerce revealed that 29 per cent of 7,400 companies surveyed in their most recent forecast plan to make redundancies by the end of September.
According to the business lobby group, this is the highest ever percentage of companies planning to lay off staff since it started tracking employment intentions in 1989.
As the government prepares to wind the furlough scheme next month, there are growing concerns over the pace of the UK`s economic recovery, with fears of mass unemployment.
The UK chancellor, Rishi Sunak admitted that the government could not be able to assist every employee, he said: “We have the prospect of many people losing their jobs. I’m determined to do what I can to protect as many jobs as possible, and I believe this will do that.”
The BBC stated that, despite the chancellor`s promise at the summer economic update to take additional spending measures, Sunak still needed to take more action to lower the damage for jobs, including the temporary cut in employer national insurance contributions and more funding for training staff.
The co-executive director of the BBC, Hannah Essex, said: “Many businesses are suffering from a historic cash crunch and reduced demand, meaning firms will still face tough decisions despite welcome interventions made in the summer statement”.
At the beginning of this week, the Office for Budget Responsibility said that the unemployment rate could jump from its current rate of 3.9 per cent to 12 per cent, before the end of the current year.