AROUND half a million people could lose their jobs this autumn, a shocking new study has predicted.
Research by the Institute for Employment Studies showed that between May and July this year, bosses told the government that 380,000 workers were at risk of redundancy.
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This is more than double the peak reached in the Great Recession, when 180,000 staff were notified as being at risk between January and March 2009, it added.
But after analysing data of notified and actual redundancies, the UK’s economy could be hit harder with 450,000 redundancies in the coming months – the highest figure since 1995.
This may jump to higher than 700,000 if job loss notifications continue to rise, the IES said.
Their analysis is based on Insolvency Service data collected from employers planning 20 or more redundancies (which are given on HR1 forms).
The figures were then compared with estimates of actual redundancies reported in the Labour Force Survey.
The study comes as the government’s furlough scheme, launched in March to help firms struggling to pay their staff’s wages during lockdown, will be wound down on October 31.
Trade bodies and top politicians have been calling for an extension of the scheme – which helped 9.6 million people by August 16 this year – but Chancellor Rishi Sunak has stood his ground and said the scheme will stop on that date.
Meanwhile, around 2.7 million self-employed people have claimed around £7.8billion in support from the Government.
Despite the financial aid available, several industries have been financially crippled by the loss of income during the pandemic.
Businesses in turmoil in 2019 and 2020
OAK Furnitureland is the latest in a long list of businesses to be facing trouble. In 2019 and so far in 2020 we’ve seen:
- Go Outdoors enter into administration putting 2,400 jobs at risk
- Jamie Oliver’s “Jamie’s Italian“chain go bust, alongside his Fifteen and Barbecoa restaurants
- Links of London go into administration putting 350 jobs at risk
- Marks and Spencer close 35 more stores as it pushes forward with plans to axe 145 shops across the UK
- Dozens of Monsoon and Accessorize stores close
- Struggling shoe shop Office has said it “could close shops” as part of restructuring plans
- Fears Pizza Express could be next to go into administration as it “brings in emergency advisers”
- Hairdressing chain Supercutswent into administration in October 2019 – putting 1,200 jobs and 220 salons at risk
- Maternity and baby retailer Mothercare collapsed into administration in November 2019 after 58 years on the high street, putting 2,500 jobs at risk
- Department store chain Bealeswent into administration in January 2020 with 23 shops and 1,052 jobs at risk
- High end fashion brand Ted Baker said it plans to axe 160 jobs in February 2020
- Mobile phone retailer Carphone Warehousesaid in March 2020 that it’ll close all 531 standalone stores in April
- Vintage furnishing and fashion firm Cath Kidston said it was closing all 60 high street stores in March 2020
- Fashion store Animal said in April 2020 it was closing all 21 of its UK stores
- Department store chain Debenhams fell into administration for the second time in April 2020
- P&O Ferries said in May 2020 that it was looking at making 1,100 workers redundant
- TUI warned in May 2020 that 8,000 jobs could be cut due to the ongoing coronavirus crisis
- British Airways said in May 2020 that it still plans on pressing ahead with 12,000 job cuts
- Oasis and Warehouse went into administration in May 2020, with 1,800 staff placed on furlough
- Shoe chain Aldo collapsed into administration in June 2020 with five stores permanently closed
- Victoria’s Secret plunged into administration in June 2020, putting 800 jobs at risk
- Fashion chain Quiz put its shop business into administration in June 2020, putting 82 stores at risk
- Pret a Manger is cutting 30 shops, putting 1,000 jobs at risk
- John Lewis is closing eight stores, with 1,300 jobs on the line
- Boots will shut 48 optician stores, putting more than 4,000 jobs at risk
IES director Tony Wilson has called for “tightly targeted support” to help businesses ride the rocky next few months.
A government spokesman said support Brits’ jobs was an “absolute priority”.
He added: “We are continuing to support livelihoods and incomes through our £2 billion Kickstart scheme, creating incentives for training and apprenticeships, a £1,000 retention bonus for businesses that can bring furloughed employees back to work, and doubling the number of frontline work coaches to help people find work.
“We are also supporting and protecting jobs in the tourism and hospitality sectors through our VAT cut and last month’s Eat Out to Help Out scheme.”
Amazon recently announced it was creating 7,000 jobs across the UK in next few months.
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