UK companies to cut about 900,000 jobs in 2020

It is estimated that close to a million jobs would have been lost in 2020, for the intervention of the government. Several economic policies were launched by the UK government to prevent such loss.

900,000 jobs would have been lost to COVID-19 2021

British companies have made plans to slash about 890, 000 jobs in 2021 due to the COVID-19 pandemic. Most job owners are fearful of their business running down and were making plans to retrench workers.

About 12,000 companies planned employment cuts to keep their business floating, however, by December the numbers had slightly reduced. The saving grace for the employers was the government furlough scheme which was launched to save jobs, and keep as many Britons as possible working.

According, to the British Insolvency Service, employers must let them know if they want to slash more than 25 or more jobs. Most sections of the UK economy were brought to a stalemate over a few months during the 2020 lockdown imposed by the government.

Jobs lost in 2020 greater than what a decade

The figures for the employment cut proposed last year were higher than the 500, 000 experienced during the 2010 recession. However, it is expected that in recent months, these figures will reduce especially in the food and health sector. The only slight problem that may delay such economic progress is the new COVID-19 strain which has seen infection cases rise in the country.

In December, employers called the attention of the government to the 22,000 job clauses expected which were the lowest in 2021. Government authorities have decided to extend the furlough scheme which allows the government to pay salaries when the firms can’t.

According to Tony Wilson, a director at the institute for employment studies, this will reduce the number of unemployed citizens in the country. The problem, however, lies in redundancy among the general populace. But Mr. Wilson says the immediate aim of the agency is to keep people in their work.