Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Jobs 'crisis' twice as bad as previous recession

Jobs 'crisis' twice as bad as previous recession

Employers in Britain are planning more than twice as many redundancies than they did at the height of the last recession, new figures show.

About 180,000 job cuts were planned from January to March 2009, while 380,000 were planned from May to July this year.

Completed redundancies could reach 735,000 this autumn, researchers say.

The figures were obtained by an Institute for Employment Studies (IES) Freedom of Information request.

Social distancing measures to prevent the spread of Covid-19 brought large parts of the UK economy to a standstill, forcing workers to stay at home, closing shops and bringing transport to a halt.

As a result, many businesses have been forced to consider reducing their workforces by making employees redundant.

Employers in England, Scotland and Wales must notify the Insolvency Service if they plan to make 20 or more workers redundant in any single "establishment" using a form called HR1.

This information is not usually published, but on 8 September a Freedom of Information request by the BBC revealed that employers had listed more than 380,000 positions as at risk between May and July 2020.



The IES has now obtained and analysed data stretching back as far as 2008.

This shows that the current redundancy wave is more than double the previous three-monthly peak of 180,000 from January to March 2009.

Then the crisis, which had begun in the finance industry, was affecting most of the economy - and forcing many employers to reduce their staff.

"Comparing what is happening now with what was happening in the last recession shows us we are experiencing a jobs crisis unlike anything we have seen before," said Tony Wilson, Director of the IES.

The IES is calling for extra support for viable firms to help them retain staff, as well as training and advice to help those who lose their jobs find new employment rapidly.

A government spokesperson said: "Supporting jobs is an absolute priority which is why we've set out a comprehensive 'Plan for Jobs' to protect, create and support jobs across the UK by providing significant, targeted support where it is needed the most."

Government measures include the £2bn "kickstart scheme" to encourage employers to create new training placements and apprenticeships, extra work coaches in job centres, and a £1,000 incentive to encourage employers to bring staff back from furlough.


Will these planned redundancies be completed?


Because they are filed at the start of the redundancy process, HR1 forms give an early indication of what is happening in the labour market.

The HR1 redundancy figures don't pick up employers cutting fewer than 20 jobs, so the final total of redundancies is usually higher.

The Office for National Statistics also publishes a redundancy count based on the Labour Force Survey, which is used to calculate the monthly unemployment rate.

This is always published a few months after the data is gathered, so it hasn't yet picked up a big spike in redundancies or unemployment.



However, Labour Force Survey redundancy figures have been around 20% higher than HR1 figures in recent years.

On this basis, the IES estimates that 445,000 jobs could be made redundant between July and September, considerably worse than the three-month peak in the previous recession.

During that recession, however, actual redundancies were 80% higher than notified redundancies - which could lead to as many as 735,000 positions being cut at the height of the coronavirus crisis.

However, companies sometimes announce plans redundancies which they don't actually make, because circumstances change.

Early 2019, for example, saw a big spike in redundancy plans which were never completed. Mr Wilson believes they could have been linked to fears of a no-deal Brexit, which did not happen.

The 2018 spike could be linked to the collapse of the construction company Carillion, which had a lesser impact on jobs than initially feared.

Companies in Northern Ireland file HR1 forms with the Northern Ireland Statistics and Research Agency and they are not included in these figures.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
Finnish MP Dies by Suicide in Parliament Building
Outrage in the Tennis World After Jannik Sinner’s Withdrawal Storm
Class Action Lawsuit Against Volkswagen: Steering Wheel Switches Cause Accidents
UK Government Tries to Sue 4chan for Breaching Online Safety Act
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Cambridge Dictionary Adds 'Skibidi,' 'Delulu,' and 'Tradwife' Amid Surge of Online Slang
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
The CEO Who Replaced 80% of Employees for the AI Revolution: "I Would Do It Again"
"Every Centimeter of Your Body Is a Masterpiece": The Shocking Meta Document Revealed
Character.ai Bets on Future of AI Companionship
China Ramps Up Tax Crackdown on Overseas Investments
Japanese Office Furniture Maker Expands into Bomb Shelter Market
Intel Shares Surge on Possible U.S. Government Investment
Hurricane Erin Threatens U.S. East Coast with Dangerous Surf
EU Blocks Trade Statement Over Digital Rule Dispute
EU Sends Record Aid as Spain Battles Wildfires
Beijing is moving into gold and other assets, diversifying away from the dollar
China Requires Data Centres to Source Majority of AI Chips Locally, For Technological Sovereignty
Escalating Clashes in Serbia as Anti-Government Protests Spread Nationwide
Category 5 Hurricane in the Caribbean: 'Catastrophic Storm' with Winds of 255 km/h
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Digital Humans Move Beyond Sci-Fi: From Virtual DJs to AI Customer Agents
YouTube will start using AI to guess your age. If it’s wrong, you’ll have to prove it
Jellyfish Swarm Triggers Shutdown at Gravelines Nuclear Power Station in Northern France
OpenAI’s ‘PhD-Level’ ChatGPT 5 Stumbles, Struggles to Even Label a Map
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
The World Economic Forum has cleared Klaus Schwab of “material wrongdoing” after a law firm conducted a review into potential misconduct of the institution’s founder
A Computer That Listens, Sees, and Acts: What to Expect from Windows 12
Bitcoin hits $123,000
Southwest Airlines Apologizes After 'Accidentally Forgetting' Two Blind Passengers at New Orleans Airport and Faces Criticism Over Poor Service for Passengers with Disabilities
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Russian Forces Advance on Donetsk Front, Cutting Key Supply Routes Near Pokrovsk
It’s Not the Algorithm: New Study Claims Social Networks Are Fundamentally Broken
Sixty-Year-Old Claims: “My Biological Age Is Twenty-One.” Want the Same? Remember the Name Spermidine
Saudi Arabia accelerates renewables to curb domestic oil use
The Billion-Dollar Inheritance and the Death on the Railway Tracks: The Scandal Shaking Europe
World’s Cleanest Countries 2025 Ranked by Air, Water, Waste, and Hygiene Standards
Denmark Revives EU ‘Chat Control’ Proposal for Encrypted Message Scanning
Perplexity makes unsolicited $34.5 billion all-cash offer for Google’s Chrome browser
Cristiano Ronaldo and Georgina Rodríguez announce engagement
×