Serious risk that new jobs plan won’t work, says think tank
Responding to Chancellor’s statement, Aidan Shilson-Thomas, Senior Researcher, Reform think tank, said:
“The Government’s new scheme is rightly trying to prevent a looming jobs bloodbath without propping up zombie jobs. It is not clear they have found that balance.
“This follow up to furlough has an in-built disincentive for employers, unlike the schemes in Germany and France where the State alone covers the costs of hours not worked. Why would an employer, struggling to stay afloat and uncertain when the economic tide will change, pay this additional cost? Many may opt for simply reducing workers’ hours without top up or proceeding with redundancy.
“Particularly worrying, the Chancellor does not seem to have allocated any further funding for retraining and upskilling, despite the fact that unemployment looks set to keep rising. This is a black hole in the Government’s thinking.”