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UK economy reopens but darker days ahead

Tuesday, September 15, 2020

Even as the UK economy slowly reopened in July, the labour market deteriorated. Job losses as a result of the pandemic now stand close to 700,000 and the unemployment rate reached 4.4%. If breaking international law is not the low point for this government, these unemployment figures must surely be. Chancellor Sunak wants to end the furlough scheme as soon as possible, which is partially understandable given the immense strain it puts on the public purse, but with an expectation of twice as many job losses compared to the dark days of 2008/9 this could be the start of a negative feedback loop for the UK economy should support be withdrawn. Much darker days ahead.

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