The economic destruction of furlough schemes

by SpontaneousDisorder

Here in the UK the government created a furlough scheme which pays employers 80 percent of their wages not to work (the same amount is received by the furloughed employee).

This basically means an employer can layoff an employee almost for free, a pretty good deal during an economic collapse and government imposed lockdown.

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This has lead to 8 million employees being furloughed out of a workforce of of 31 million. Or about 25 percent.

This is not included in the unemployment numbers.

Until the scheme has been withdrawn we won’t know the true scale of the collapse in the labor market.

 

 

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