“7.5 million Britons are in a limbo the statisticians describe euphemistically as ‘away from work’,” said Karim Yousfi, chief global strategist at Audacity Capital.
“A great proportion of these people are still having the bulk of their wages paid by the British state. But as the UK’s furlough scheme is phased out over the coming months, those whose jobs have ceased to exist will be forced into the ranks of the unemployed.”
Private sector forecasts compiled by the government suggest unemployment will rise to around 8% later this year, compared to the current rate of 3.9%. The government’s own budget watchdog thinks it could rise above 11%.
The UK’s jobs market in the coming months will likely show “fewer people in work, and those who are lucky enough to keep their jobs are likely to be earning less,” Yousfi said.