Prepare for mass unemployment

As the furlough scheme comes to an end, job losses will soar. That will demand a radical response, says Matthew Lynn.

Rishi Sunak in a bar © Jeff J Mitchell/Getty Images
Rishi Sunak is ending the furlough scheme
(Image credit: © Jeff J Mitchell/Getty Images)

Despite the severity of the slump, so far we have not seen a tidal wave of job losses. Sure, almost every day there is a fresh round of redundancies at a retailer, restaurant chain or airline. But it is usually only a thousand or two. The latest statistics showed the headline unemployment total remained close to a record low, at only 3.6%, even if, rather ominously, the total number of hours worked showed a steeper decline, as did the overall number of people in employment. Even so, given the scale and the speed of the slump, far more people are still in jobs than you might expect.

How bad will it get?

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Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.