Unemployment in the UK will skyrocket to almost THREE MILLION by Christmas

Nearly three million people will be unemployed by Christmas, according to a shocking prediction, and about 1.5 million will lose their jobs before the end of the year.

The dire warning from the think tank Center for Economics and Business Research (CEBR) comes as its economists said that data from its Business Distress Tracker and the Office for National Statistics indicated that Rishi Sunak’s new licensing plan was unlikely avoid a major loss of jobs. ‘

Last week, the chancellor pledged to expand the plan, which will now pay two-thirds of the salaries of staff who have been forced to stop work due to local closures.

This came before an expected announcement today that the restrictions will require some businesses to close in outbreak areas.

Nearly 3 million people will be unemployed by Christmas, according to a shocking prediction

The CEBR said: “The low-skilled and low-wage sectors that are particularly affected by this crisis (for example, the hospitality industry) will not make extensive use of this.

“Therefore, the plan is unlikely to prevent a significant loss of jobs.”

The new scheme pays two thirds of the salaries of staff who have been forced to stop working by law in local confinements.

It’s less extensive than the one it replaced, which paid 80 percent of workers’ wages and was rushed to avoid a precipitous explosion of unemployment.

The government announced the first leave plan in March after the country entered a national shutdown and many companies were forced into essentially hibernation, especially if their employees were unable to work from home.

Economists at the Center for Business and Economic Research (CEBR) said data from their Business Distress Tracker and the Office for National Statistics indicated that Rishi Sunak’s new licensing scheme (pictured) was “ unlikely to prevent a significant loss of jobs. ”

The permit was originally supposed to end in August.

About 3.6 million people were still on leave at the end of September.

According to CEBR, the companies plan to lay off more than a third (35 percent) of the staff on leave after the plan ends in less than three weeks.

And there are many industries that will not benefit from the new state aid.

Many will be ‘closed in everything but name’, according to a Labor analysis, but in reality they will not be legally forced to close, which means they will not be eligible.

This includes conference and exhibition organizers, caterers, and actors, musicians, and other creative artists.

The expert group said: “The low-skill, low-wage sectors that are particularly affected by this crisis (eg hospitality) will not make extensive use of this. Therefore, the plan is unlikely to prevent a significant loss of jobs. ‘

Layoffs have already risen at their fastest rate in more than a decade.

According to the Office for National Statistics, the total number of workers on the company’s payroll fell by almost 700,000 between March and August.

The latest data released by the Office for National Statistics suggests that the UK’s V-shaped recovery from the coronavirus crisis is slowing.

The Office for National Statistics revealed last month that public sector debt continues to climb above 2 trillion pounds.

Layoffs in the three months through July increased at the fastest pace since 2009, 48,000 more than in the previous quarter.

The official unemployment rate has now risen for the first time after the start of the pandemic, going from 3.9 to 4.1 percent, a two-year high.

The bleak outlook for jobs follows a previous CEBR investigation that found that a third of all publicly traded companies by early 2020 are expected to go bankrupt next summer.

During a normal 18-month period, about 15 percent of businesses typically shut down, but the coronavirus pandemic has hit commerce in virtually every industry and pushed many businesses to the brink.