Covid: nearly 500,000 layoffs planned since the crisis began

British employers planned 58,000 layoffs in August, bringing the total to 498,000 during the first five months of the Covid crisis.

966 different employers informed the government of plans to cut 20 or more jobs, compared with 214 last August, an increase of more than four times.

However, the figures were lower than the levels seen in June and July, at which 150,000 job cuts were planned.

The figures were released to the BBC following a request for freedom of information.

The economy recovered in the summer after the unprecedented economic downturn earlier in the year as workers were urged to return to the office and customers were encouraged to spend more through schemes such as Eat Out To Restaurant Vouchers. Help Out.

However, several large companies in many of the hardest hit sectors, such as retail and restaurants, announced big layoff plans, including Debenhams, DW Sports, Marks & Spencer, Pret a Manger, foreign exchange company Travelex, and WH Smith.

The 58,000 positions put at risk in August were considerably lower than in previous months, but still exceeded by more than 150% the previous year.

“There was a sense of optimism in August, we were starting to see more spending and more activity, there was hope for a quick recovery,” said Rebecca McDonald, senior economist with the Joseph Rowntree Foundation think tank. “That seems a lot less likely now.”

A government spokesperson said: “Supporting employment is a top priority, which is why we have put in place our employment plan to protect, create and support jobs across the UK.”

“We are helping employees get back to work through a £ 1,000 retention bonus, creating new roles for young people with our £ 2 billion Kickstart scheme and doubling the number of front-line job coaches.”

How will the end of the licensing regime affect layoffs?

The big summer rush may have been caused in part by companies preparing to cut staff before the licensing plan ends on October 31.

That plan, in which the government pays part of workers’ wages when their employers can’t, has helped reduce the number of layoffs related to the pandemic. A total of 9.6 million jobs were suspended.

But since most layoff processes take months to complete, companies planning major layoffs at the end of the permit would have to notify the government in the summer.

Chancellor Rishi Sunak unveiled a new employment support plan last month, in which the government will subsidize the pay of employees who work less than their normal hours due to reduced demand.

It is less generous than the leave plan and the next few months of layoff data will give an early indication of how successful it has been in protecting employment.

“Many employers will have to make tough decisions in the coming months. Given the design of the new scheme, it seems likely that there will be a significant number of layoffs in the winter,” Ms. McDonald said.

“We are concerned that it is the lowest paid workers in the most affected sectors who will be most affected.”

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Employers are required to notify the government when they plan to lay off 20 or more employees at any “establishment” using an HR1 redundancy advance notice form. However, they often make fewer posts redundant than the number they initially reported.

These figures reflect an increase in layoff plans long before layoff data from the Office for National Statistics, which appears several months late.

ONS figures showed 156,000 layoffs from May to July, up from 107,000 in the previous three-month period.

However, any redundancy process involving fewer than 20 people does not appear in these figures, so the final total is likely to be higher than the HR1 figures suggest.

Northern Ireland companies file HR1 forms with the Northern Ireland Statistical and Research Agency and are not included in these figures.