One in three UK companies plans to cut jobs by fall, poll finds | Business

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Up to a third of UK employers plan to cut jobs by October, according to a survey that suggests the economic impact of the coronavirus pandemic will accelerate in the coming weeks.About 33% of the more than 2,000 businesses, charities and public sector organizations participating in the survey said they plan to make layoffs in the third quarter of 2020, according to figures from the Chartered Institute of Personnel and Development (CIPD) and the Adecco group, a company workforce.

The poll suggests the UK is likely to experience a wave of economy-wide job losses as the government begins to withdraw the coronavirus job retention program.

The program paid 80% of the wages of workers on leave up to £ 2,500 per month, preventing many job losses. However, employers have been forced this month to start contributing to the payroll, and the scheme is expected to close at the end of October, although some businesses still cannot open.

Gerwyn Davies, CIPD Senior Labor Market Advisor, said: “So far layoffs have been low – no doubt due to the job retention program – but we expect to see more layoffs happening. produce this fall, especially in the private sector, once the program closes. ”

The survey found some evidence of increased confidence in hiring workers, as the easing of the lockdown made hiring less difficult. However, the CIPD said it was unlikely to make up for the wave of layoffs. Davies added that a wage cut was likely for workers, as companies try to avoid cutting jobs where possible.

Job losses have already hit hundreds of thousands of British workers across the economy, from factory workers to salespeople to flight attendants in the distressed aviation sector.

Restaurants and casual dining have also come under special pressure, with the number of jobs lost in the industry already nearly double the amount lost in 2019, new data from the Center for Retail Research shows.

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