Almost a third of companies are preparing to fire employees, according to a devastating report, while Boris Johnson is preparing to quit work from home and send millions back to the office.
The risk of mass layoffs in the report precedes the numbers that are now expected to show the largest drop in employment since the 1980s, given the real economic cost of the coronavirus pandemic.
There are fears that the poor economic situation will be exacerbated by millions of workers who stay at home – according to official government guidelines – which means that newly opened shops and restaurants suffer from low visitor numbers.
Boris Johnson will use a press conference on Friday to ask the British to return to the office and unveil their roadmap for emerging from the blockage to boost the economy and get money back on the high street, as The Sun reports.
More than one million companies are currently claiming tax support through the Job Retention Scheme, which pays the wages of 9.4 million workers.
The recent UK Chamber of Commerce (BCC) survey of 7,400 companies found that almost three in ten companies are expected to cut their workforce before the vacation program ends in October. A similar proportion (28 percent) has fired staff since the beginning of the block.
Boris Johnson will use a press conference on Friday to ask the British to return to the office and reveal his roadmap for emerging from the blockade, while alleviating fears of a second wave of the deadly pandemic
The ongoing economic discomfort has prompted the Prime Minister to launch his new "Contain Framework" on Friday to show workers that the virus is under control in their region.
It is hoped that this will lure people back to the office, along with the "hit on the mole" strategy, in which they are considering additional measures to prevent a feared second wave of the fatal disease.
This includes a new rating system when traveling is safe. The public continues to be asked to use public transportation between 9 AM and 4 PM and not during rush hour. And cycle or run if possible.
A Whitehall source told The Sun: “We are watching the news – it's about evaluating the times when people travel.
“There is a lot of additional capacity in public transport that is not being used.
"People are told that it is safe to travel if you avoid rush hour and crush times."
Chancellor Rishi Sunak wears a mask when he buys lunch from Pret
The UK Chamber of Commerce report also said that employment prospects for companies with ten or more employees are worse, as more than four in ten expect layoffs in the next three months.
According to an expert from the Bank of England, the British economy is facing an "incomplete V-shaped" recovery
According to a political decision by the Bank of England, the UK economy is set for an "incomplete V-shaped" recovery from the coronavirus crisis, the recovery of which is expected to come to a halt in late 2020 due to rising unemployment.
Bank rate maker Silvana Tenreyro said an expected increase in the number of people out of work, likely due to the loss of government support in the coming months, will slow consumer spending.
In the meantime, continued social distancing in key areas of the economy, such as the hospitality industry, and continuing fears of coronaviruses, which may prevent some buyers from returning to the main street, could also hamper growth.
Ms. Tenreyro predicted an "interrupted" or "incomplete" V-shaped recovery as an initial recovery in activity lost steam at the end of the year.
When asked the Prime Minister's questions yesterday, Boris Johnson said he couldn't swing a wand to save millions of jobs at risk from the corona virus.
Capital Economics expects today's Office of National Statistics report to show that around 210,000 people lost their jobs in May. This is the largest increase since the mid-1980s recession.
The report, which was created in collaboration with Totaljobs, also found that recruitment stopped. Only 25% of companies wanted to hire new employees in another bleak record for the report.
The numbers stem from growing fears of mass unemployment as companies fire workers to deal with the aftermath of the Covid 19 crisis.
Bank of England governor Andrew Bailey has already put in place a three-point plan to bolster the economy, The Daily Telegraph reports.
It has been assumed that Mr. Bailey is shocked by abandoned cities and city centers and fears that they will hold back the economy.
He has called on the government to lift the remaining restrictions, put people back in public transport, and get people back to work – and warns that the country will be in "recession for a long time" if it says so ignored.
And he appeared before the influential committee in 1922 and said that train usage was 20 percent lower than usual.
A MP in the conference call with Mr. Bailey told the Daily Telegraph: “The point he raised is that we can only revitalize central London and other city centers if people feel safe using public transport.
Mr. Johnson is expected to urge officials to lead the way in physically returning to work to set an example for the nation.
A lot of the officers worked from home during the coronavirus crisis, but Whitehall departments are now preparing Covid risk assessments to determine how many employees can physically return.
The BCC welcomed Chancellor Rishi Sunak's announcements in last week's summer statement – including a job retention bonus plan that gives the company £ 1,000 for every employee on vacation who gets them back to work.
People on the Central Line on the London Underground on Wednesday morning
Hannah Essex, co-executive director at the British Chambers of Commerce, said the government should "consider adding support to employers ahead of the fall budget to reduce the overall cost of employment and prevent substantial layoffs."
He also presented a kickstart and apprenticeship recovery program to support the labor market.
Boris Johnson admits that jobs will be lost after the OBR watchdog warned that 4MILLION could be in the queue by next year
Boris Johnson insisted that he did not have a "magic wand" to save jobs today because he admitted there was a wave of layoffs.
The Prime Minister said "nobody should underestimate the challenges" Britain faces after the watchdog warned the government that four million people could be in line by next year.
A horrible assessment by the Department of Budget Responsibility yesterday also showed that government debt will increase by around £ 700bn in the next five years as a result of the coronavirus crisis.
At Sir Keir Starmer's urging PMQs what he would do to support companies struggling to survive, Mr. Johnson emphasized the tremendous support from the state.
But he said, "Unfortunately, we cannot just use a magic wand to ensure that every job that was done before the crisis is preserved after the crisis."
Sir Keir also wanted to know what the ministers were doing to prepare for a second surge in corona virus in the fall.
The Prime Minister shot back: "Not only are we making preparations for a possible new rise, but he will also know that the government is making record investments in the NHS."
However, the BCC and Totaljobs urged him to take further action and called for a temporary cut in social security contributions to protect businesses and jobs.
Hannah Essex, Co-Executive Director at BCC, said: & # 39; Many companies are suffering from an historic money crisis and lower demand, which means that despite welcome interventions in the summer statement, companies will still face difficult decisions.
"The government should consider additional support for employers before the fall budget to reduce the overall cost of employment and prevent substantial layoffs."
She also said that the government could consider support for employee qualification and retraining if companies adjust to changing labor practices after the ban.
According to a recent analysis by PA news agency, at least 150,000 UK employers have cut or jeopardized at least 150,000 jobs.
In total, around 75,000 job losses were announced last month alone.
The Housekeeping Office said Tuesday that the UK may face an unemployment rate that may rise from just under 4% to 13%.
However, according to total jobs, there are some tentative signs of a recovery, with the number of roles posted on his website for June up 30% from the previous month.
In those sectors that benefited from the relaxation of the restrictions, the number of vacancies rose sharply – by 51% in retail, by 47% in travel and by 23% in the hospitality sector.
A government spokeswoman said: “During the pandemic, we acted quickly to secure jobs and income. Our support package has so far totaled £ 160 billion.
"The job plan announced last week, including the job retention bonus and the new Kickstart program, will give businesses the confidence to keep, hire and create jobs in every part of our country."
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