Redundancies Expected to Surge in Second Half of 2020
- Over 700,000 jobs at risk due to end of furlough scheme
- 650,000 redundancies expected in second half of 2020
- 445,000 redundancies between July and September
- 205,000 more between October and December
- Labour Force Survey shows 240,000 made redundant in first half of the year
- Investment in infrastructure and job creation needed for medium to long-term support
- Short-term solution: Reduce employer National Insurance Contributions
Research from the Institute for Employment Studies (IES) reveals that over 700,000 employees face potential redundancy as the furlough scheme comes to an end. IES predicts 650,000 job losses in the second half of 2020, with 445,000 between July and September and another 205,000 between October and December. However, this number could rise if redundancy notifications don’t decrease as expected or if a larger proportion of notifications result in actual job losses. Labour Force Survey data shows 240,000 people were made redundant from January to June. IES suggests investment in infrastructure and job creation for long-term support, while reducing employer National Insurance Contributions (NICs) could boost labour demand in the short term.
Factuality Level: 8
Factuality Justification: The article provides accurate information from the Institute for Employment Studies (IES) about potential redundancies in the second half of 2020, cites Labour Force Survey data, and offers a recommendation to reduce employer National Insurance Contributions as a solution. It is well-researched and objective.
Noise Level: 3
Noise Justification: The article provides relevant information about the potential number of redundancies in the second half of 2020 and suggests a possible solution to boost labor demand by reducing employer National Insurance Contributions. However, it lacks in-depth analysis or exploration of long-term trends or consequences on those affected.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses potential job losses which could impact companies’ financials, labor market, and potentially affect hiring and investment decisions.
Financial Rating Justification: This article is financially relevant as it discusses the potential for a significant number of redundancies in the second half of 2020, which would have an impact on companies’ expenses and labor market. Additionally, it suggests a possible solution to boost labour demand by reducing employer National Insurance Contributions, which could affect company finances and investment decisions.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: While there are discussions about potential job losses and economic impact, it does not meet the criteria for an extreme event as defined in the task.
www.retailsector.co.uk