UK labor market faces bigger problem than unemployment

The UK government support program will soon close, but unemployment continues to skyrocket.

This is reported by the agency “Reuters”.

According to experts’ forecasts, the crisis will apply colossal damage to the British labor market. It implied a partial payment to employees of non-working enterprises of the state budget.

A number of companies, including British Airways and the large retail chain WHSmith, are planning to lay off their staff in the near future. Now, however, the problem is not that companies are laying off their employees.

“The fact that hiring, more layoffs, is the main slowdown in job growth today, bodes well for the coming months”, – said Gervin Davis, senior labor market advisor at the Chartered Institute for Personnel Development.

Economists polled by Reuters had expected the unemployment rate to rise to 4.2%. Last week, the Bank of England predicted that the unemployment rate would reach 7.5% by the end of this year. At the same time, the UK economy is forecast to collapse by 21% in the second quarter.

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