Labor Warns: Workers are ‘heading for scrap heap’ as ‘viable’ jobs are only supported

Over a million jobs are in jeopardy in sectors that will remain largely shut down as the pandemic gets worst.

Official statistics were used by the party to reveal the number of workers that are likely to miss out on Treasury help after the chancellor Rishi Sunak stated that he would “support viable jobs” only.

Only the staff able to work for at least one-third of the regular hours may receive wage top-ups – this is “impossible” for entertainment and as well as hospitality industries, as protested by Labor.

The jobs that are in danger are in the nightlife sector, the sports industry, events and conferences, and creative, arts and entertainment.

“The chancellor is consigning whole sectors of our economy to the scrap heap, damaging lives and livelihoods, and threatening the recovery,” said Lucy Powell, the business spokesperson

“Even for those who can access it, the job support scheme is badly designed and could lead to a wave of job losses, because the chancellor’s sums do not add up for businesses. He must think again.”

The latest criticism reflects the calculation that firms will be useful when they employed a single worker full-time than two workers part-time.

In an emergency statement last week, Mr. Sunak has announced that the government will help pay for the workers’ reduced hours, though most of the burden may fall on their employers. This follows the abandonment of the furlough scheme, named as successful in avoiding an immediate unemployment increase but is also deemed too expensive.

The chancellor stated: “It will support viable jobs. To make sure of that, employees must work at least a third of their normal hours and be paid for that work as normal by their employer.”

Then he disputed criticism by commenting: “It is better that our support is targeted and focused on supporting viable jobs in our economy – and that means a new approach.”

However, Labor said that a survey for the Night-Time Industries Association, which represents 1,200 bars, clubs, casinos and music venues, found that 80 per cent were planning to lay off staff when the furlough scheme finishes.

This is UK’s fifth-biggest industry, accounting for at least 8% of the UK’s employment and annual revenues amounting to £66bn.

Adding to this, Labor says that an estimated 500,000 people are working in the wedding industry and then supply chains, which is now facing restrictions with guest limiting to only 15.

Mr. Sunak admits that the jobless count will still increase until the end of the year. The Bank of England believes that it will peak to 7.5%, but some economists think that it will be much higher.

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