One in three companies operating in the United Kingdom are expecting to make job cuts in the third quarter of this year due to the economic uncertainty caused by the coronavirus disease pandemic and the phasing out of a government furlough scheme, fresh research conducted by staffing firm Adecco and the Chartered Institute of Personnel and Development (CIPD) revealed on Monday
MOSCOW (Pakistan Point News / Sputnik - 10th August, 2020) One in three companies operating in the United Kingdom are expecting to make job cuts in the third quarter of this year due to the economic uncertainty caused by the coronavirus disease pandemic and the phasing out of a government furlough scheme, fresh research conducted by staffing firm Adecco and the Chartered Institute of Personnel and Development (CIPD) revealed on Monday.
"The latest quarterly Labour Market Outlook report shows a 50% increase in the number of organisations expecting to cut jobs compared to the spring report, rising from 22% three months ago to 33% in this latest report. Twice as many private sector employers (38%) expect to make redundancies compared to the public sector (16%)," a press release published by the CIPD read.
The latest forecast is the weakest prediction for job market confidence seen in the United Kingdom for multiple years, senior labor market adviser at the CIPD, Gerwyn Davies, said, adding that job cuts are predicted to rise once the government's coronavirus job retention scheme ends.
"This is the weakest set of data we've seen for several years. Until now, redundancies have been low - no doubt due to the Job Retention Scheme - but we expect to see more redundancies come through this autumn, especially in the private sector once the scheme closes," Davies said.
Chancellor Rishi Sunak unveiled the United Kingdom's coronavirus job retention scheme in March. The initiative allows furloughed workers to receive as much as 80 percent of their monthly wage, up to 2,500 Pounds ($3,257).
The scheme is set to be phased out over the coming months as employers will be expected to make greater contributions, and the initiative is scheduled to expire in October.
