British Businesses Planning to Lay Off Staff After Job Retention Scheme Support Ends - Forex News by FX Leaders
British Businesses Planning to Lay Off Staff After Job Retention Scheme Support Ends

British Businesses Planning to Lay Off Staff After Job Retention Scheme Support Ends

Posted Thursday, June 18, 2020 by
Arslan Butt • 1 min read

A recent survey by YouGov indicates that companies will have to let their staff go once the British government’s job retention scheme support comes to an end. Around 50% of the companies surveyed said that they would have to lay off their workers within three months after the furlough scheme ends.

Meanwhile, only 34% of companies felt confident that they would be in a position to retain all their staff while 21% were planning to lay off 10 or more workers. The government’s job retention scheme has so far benefited around 9 million workers who have been temporarily laid off by their employers, offering them around 80% of their wages.

The scheme is expected to run till July in the current form and get extended into October with companies expected to pay a greater share of wages. Even as the British economy reopens, there is the risk of unemployment rising in certain sectors which may take much longer to rebound.

Meanwhile, 48% of companies praised the government’s response to the coronavirus pandemic towards businesses, while 38% termed it as bad and 13% indicated indifference. However, despite the government’s efforts to support businesses through the coronavirus crisis, the business outlook continues to remain pessimistic, with 80% of businesses expecting the economy to be in a worse condition over the next 12 months.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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