Britain faces serious unemployment

Britain’s GDP shrank by 20.4% in the second quarter of this year on a month on month basis, the largest quarterly decline on record, according to preliminary statistics released by the office of national statistics on August 12. The UK fell into recession for the first time in 11 years. Due to the economic downturn, the situation of the British job market is grim. According to media reports, since March this year, the number of unemployed people in the UK has reached the highest level in 10 years. < / P > < p > after the outbreak of the epidemic, British companies have announced layoff plans one after another, including well-known enterprises such as Rolls Royce, an aero engine company, and Debenham, a department store chain. Since March this year, the number of unemployed people in the UK has reached 730000, and the number of people applying for unemployment benefits reached 2.7 million in July, double the number in March. < / P > < p > service industry is the pillar industry of the UK. In the second quarter of this year, the UK’s services sector recorded its biggest decline ever. The number of unemployed people in catering, leisure and other industries has doubled in 2019, the Guardian reported. This year’s decline in the job market makes it difficult for graduates to find satisfactory jobs. < / P > < p > the data of the British National Bureau of statistics also shows that although some people have been in the state of employment, their identities have changed, from employers and entrepreneurs to employees of other enterprises, reflecting the impact of the epidemic on the economy. A local Porter told this newspaper that he used to run a restaurant with good business, but after the restaurant closed down due to the epidemic, he had to find a temporary job to carry electrical appliances for an e-commerce company. < / P > < p > the British government launched the “wage subsidy scheme” in March. As long as enterprises promise not to lay off employees, the government can subsidize 80% of the employees’ wages, with a maximum of 2500 pounds per person per month. At the beginning of the epidemic, this move effectively ensured employment. According to statistics, the UK Treasury has so far helped enterprises pay nearly 52 billion pounds for 9.6 million jobs. However, since August, the plan needs to be jointly undertaken by enterprises and the government. The plan will end in October. At present, there is no extension plan, which increases the uncertainty of enterprise operation. Recently, more and more British companies have joined the ranks of layoffs. In the last two weeks of July alone, about 10000 jobs were cut. < / P > < p > the Bank of England predicts that the UK economy will shrink by 9.5% this year without the occurrence of the second wave of the epidemic and the free trade agreement between the UK and Europe. It will not return to the pre epidemic level until the end of 2021 at the earliest. The National Institute of economic and social research predicts that the unemployment rate in the UK may rise to about 10% in the second half of this year. Due to the lag of the labor market, the unemployment rate in the next few years may continue to be higher than the average level in previous years.