Research Warns of Unprecedented Unemployment Surge in Lower-Paying Sectors
- 11.7 million people at risk of furlough or unemployment in coming months
- Research from Resolution Foundation
- Unemployment likely concentrated in hospitality and retail sectors
- 3.1 million employees (46%) in lower-paying sectors may be furloughed
- 800,000 more workers could become unemployed in these sectors
- Only 4% of finance and insurance sector at risk of furlough
- 1.4 million new Universal Credit claims in past four weeks
- Government’s Job Retention Scheme crucial to crisis response
New research from Resolution Foundation suggests that nearly 11.7 million people could face furlough or unemployment over the coming months, with hospitality and non-food retail sectors being hit hardest by the crisis. The UK Government’s Job Retention Scheme is expected to mitigate but not eliminate job losses. Over 3.1 million employees (46%) in these sectors may be furloughed, while 800,000 more workers could become unemployed. In contrast, only 4% of finance and insurance sector employees are at risk. A staggering 1.4 million new Universal Credit claims have been made in the past four weeks alone, with some still-working individuals also applying due to reduced hours or pay cuts.
Factuality Level: 8
Factuality Justification: The article provides accurate information from a reputable source (Resolution Foundation), discusses relevant data on unemployment and furloughing trends in different sectors, and presents a clear analysis of the situation without any significant issues with digressions, sensationalism, redundancy, or bias.
Noise Level: 3
Noise Justification: The article provides relevant information about the potential impact of the UK Government’s Job Retention Scheme on unemployment and offers insights into which sectors are most affected. It also highlights the increase in Universal Credit claims during the pandemic. The article stays on topic and supports its claims with data from Resolution Foundation research.
Financial Relevance: Yes
Financial Markets Impacted: UK job market, hospitality, retail, finance and insurance sectors
Financial Rating Justification: The article discusses the impact of the UK Government’s Job Retention Scheme on unemployment rates and its implications for various sectors of the economy, particularly in relation to furloughed or unemployed workers. It also mentions the increase in Universal Credit claims, which is a financial support system. This makes it relevant to financial topics as it deals with employment and economic trends.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, but it discusses the potential economic impact of the COVID-19 pandemic on various sectors and unemployment rates.
www.retailsector.co.uk