Great Britain: Short-time work ends – fear of consequences

London (dpa) – With the end of the British version of short-time work, concerns about an increase in unemployment are growing. According to the think tank Resolution Foundation and the national statistical office, one million people were last on Furlough, as the expiring program in Great Britain is called. How many of them will still have a job in October remains to be seen.

“Nobody really knows what’s coming next,” said the director of the investment company Fidelity International, Maike Currie, on Thursday BBC. She believes there will be underemployment as workers may not be able to return to their jobs full-time stayed afloat as a great success. He assumes that millions of people have been saved from unemployment. The projected number of unemployed is now two million lower than feared at the height of the pandemic, according to Sunak according to a statement.

According to estimates by the Resolution Foundation, since the start in spring 2020 more than eleven million people from the program. The British state also had to dig deep into its pockets: The program, officially known as the Coronavirus Job Retention Scheme, cost around 70 billion pounds (about 81 billion euros) for Great Britain represented an absolute novelty of state intervention in the labor market.

Many consider it unlikely that the end of the measure could remedy the acute shortage of long-distance drivers. “Any hope that the end of the Furlough program could miraculously resolve the crisis in the supply chains is very likely wishful thinking,” said Susannah Streeter of the British financial services company Hargreaves Lansdown of the BBC. Rather, it is to be expected that the qualifications and experience of the available workforce will not match the current vacancies be. In the spring, the UK economy benefited greatly from the lifting of many corona restrictions and grew faster than expected. In the second quarter, economic output (GDP) rose by 5.5 percent compared to the previous quarter, as the ONS statistics office announced on Thursday in a second estimate. A previous survey showed an increase of 4.8 percent.

The growth was broad based, but the strongest growth was the expenditure of private households. They alone contributed four percentage points to total growth. As a result, the retail and hospitality industries also grew. The overall economic output is still 3.3 percent lower than before the Corona crisis.

Currently, the high gas prices, an acute shortage of truck drivers and the associated shortage of fuel are affecting the economy. The UK government is trying to alleviate the situation with temporary visas and other emergency measures.

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