Rishi Sunak: New ways to protect jobs ‘my priority’


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The chancellor has said looking for new nature to protect jobs is his “number one priority” after the unemployment rate hit its highest status in two years.

Rishi Sunak said finding innovative solutions was “top of be troubled” as figures showed unemployment rose to 4.1% in the three months to July, up from 3.9%.

Struggle called for the furlough scheme to be replaced when it ends in October, forewarning joblessness could spike.

But the chancellor stressed this would not staff people find new opportunities.

Mr Sunak acknowledged the furlough wage in scheme had worked, with more than half of the 9.6 million proletarians furloughed since May returning to work by mid-August.

But he told the BBC: “I wouldn’t be being plain with people if I pretended that it was always going to be possible for people to gain to the job that they had.

“Now in terms of helping those people, I don’t think the fix thing to do is to endlessly extend furlough.

“People don’t want to be at home, they lack to be in work, and that’s why our plan for jobs is so important, because it helps accord people with new opportunities, going forward.”

Instead he said the administration had cut taxes for business, offered targeted support to the hospitality industry, and established a job retention bonus for firms that bring back staff from furlough.

At the job guard scheme’s peak in May, 30% of the workforce across the UK was furloughed. That make allowance for a calculate fell to 11% by mid-August.

Support for struggling sectors?

Earlier on Tuesday, engagement minister Mims Davies also indicated that more objected support for struggling sectors could be announced by the government.

“There last will and testament be sectors that take longer to come back – I don’t think this administration is afraid of supporting where we can,” she said.

Is the Chancellor cooking up a new jobs organize?

The furlough scheme was designed with a specific problem in mind – to memorialize people connected to jobs that would return after the pandemic elevation passed.

Any future package would be concentrated on a different target – to assistance create new and replacement jobs, or to allow for short time work.

Numeral 11 is still sceptical about sectoral targeting. How do you deal with accommodate chains, for example, a media buyer who works in the aviation industry? Pass on cash be wasted on businesses that do not need support?

But the very incidents that the chancellor pointed out to me in Stoke, that people are quite with dispatch coming off furlough, show that is less of a worry than strength be thought. The ongoing generosity of such a scheme would have to be assessed in the upon of the spending review, and high levels of government debt.

Something is cooking at the Cache as it looks beyond furlough scheme.

Though it is not yet what might be referred to as “oven enthusiastic”.

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What do the latest unemployment figures plain?

Firms have continued to remove staff from payrolls as they brief for the end of the furlough scheme on 31 October, the latest employment figures flaunt.

About 695,000 UK workers have disappeared from the payrolls of British players since March, when the coronavirus lockdown began, according to the Assignment for National Statistics (ONS).

Young workers have also been tiring hit, with those aged 16 to 24 suffering the biggest drip in employment compared with other age groups.

Some 156,000 fewer youthful people were in employment in the three months to July compared to the prior quarter, the ONS said.

  • Unemployment rate: How many people are out of work?

“Age group Z has been hit particularly hard by the economic fall out of the pandemic as the retail and courtesy sectors, which have taken such a battering, are often relied on to assistants school and university leavers find an entry-level job, and get started in the world of coax,” said Susannah Streeter, a senior analyst at Hargreaves Lansdown.

“Gloomily, this may not just be a bump in the road but could have long in relation to consequences for the path of their careers.”

The government has launched a scheme called Kickstart to spawn work placements for unemployed young people. Employers will be produce resulted £1,500 for every 16-24 year old they train.

How is the furlough scheme alt employment?

The unemployment rate has risen slightly, but experts say it does not yet fully instance the full impact of the economic crisis on jobs, with the furlough subterfuge helping keep the numbers down.

The government’s Job Retention Scheme originates tapering off this month before ending on 31 October.

Beneath the scheme the government initially paid 80% of a person’s wages up to £2,500 a month.

Since the start of September, the state of affairs’s contribution has fallen to 70%, with employers expected to make up the rest of pay.

What are the experts saying?

Darren Morgan, ONS director of economic statistics, implied there had been some signs that the economy “reopened” in July as callings including restaurants, pubs and hairdressers were allowed to trade again.

Job lacunae in the three months to August jumped by 30% to 434,000 – although this was quiet significantly below pre-virus levels.

However, Paul Dales, chief UK economist at Cap Economics research group, said he expected that “employment drive fall more sharply and unemployment will increase more promptly as the furlough scheme continues to unwind and ceases at the end of October”.

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What has the political reaction been?

Labour leader Sir Keir Starmer – talk to the TUC conference by video link, as he is self-isolating – called for an extension of part-time come up with as furlough comes to an end, with rewards for employers who keep people on, conceding that he gave no detail of these rewards.

He also called for targeted sustain for vulnerable sectors such as hospitality and aviation.

He urged ministers to “bar fire-and-rehire tactics” where workers are made redundant, then infatuated back on worse terms.

How do those affected feel?

Orrean Jacob recently perplexed the job he had done for nine years, working at the Mini car factory in Oxford as an workings worker.

“They decided to let people go, and I was one of them,” he says. Hundreds of working men at the plant were affected.

“It really hurt. When you go to work, it’s not lawful about the money or pay. It’s about making something of yourself, making supporters and making connections.”

Although he found himself in a similar position to myriad others during the pandemic, a phone call with a friend introduced him with an opportunity. They recommended he get in touch with the HS2 rail venture about their one-week training programmes.

By the end of the following week, he was fully enabled to be on-site and drive a forklift, having completed a course worth nearly £1,000 with one of HS2’s sub-contractors.

“This was just the push I needed in the off direction – to find something new, to find a new path to pursue because the other one demonstrably wasn’t working.”

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