Responding to the latest ONS Labour Market Update, Reform think tank Director, Charlotte Pickles, said:
“Today’s headline data masks the true extent of the unemployment crisis we’re heading towards. The unemployment rate may be stable, but almost three quarters of a million fewer people are on payroll, the number claiming unemployment benefits has more than doubled and economic inactivity is rising – plus millions remain on furlough.
“At the same time, we have a hiring crisis. Many of the jobs disappearing in sectors such as leisure and hospitality won’t come back. While the Government has pledged serious investment to support young people, they have all but ignored the challenge facing older workers, many of whom will have to switch careers and require support to retrain.
“Ministers should also consider a ‘flextension’ to the furlough scheme. The threat of a second wave and further local lockdowns will damage the economic recovery, simultaneously scrapping the furlough scheme risks a jobs bloodbath in the Autumn. Extending the scheme with greater flexibility, only for those sectors hardest hit, could provide a lifeline for millions.”
Covered in The i and Personnel Today.