LONDON — Official statistics reveal that the British government’s wages support strategy is continuing to keep employment levels in the nation throughout the coronavirus lockdown.
The Office for National Statistics said Thursday the nation’s unemployment rate was 3.9percent in the 3 weeks between March and May, mostly unchanged on the last three-month interval.
That may seem curious since the British market has suffered one of its most important contractions in centuries throughout this period when a lot of it had been mothballed as part of attempts to include the coronavirus.
Thus far, Britain was spared the sharp rises in unemployment found from the U.S., by way of instance, due to their Job Retention Scheme, where the government was paying the vast majority of the wages of employees who have yet to be fired. Though these employees have never been working within the last couple of months, they aren’t counted as unemployed.
Unemployment is expected to grow sharply during the coming months, particularly from October when the government has stated the strategy will conclude. Businesses then will confront the option of keeping folks in place or letting them move.
Many economists believe unemployment might more than double over 3 million annually, rates last observed in the 1980s.
“There is not much doubt that the worst is yet to emerge for the labor market,” explained Fiona Cincotta, a market analyst in City Index.