London Daily

Focus on the big picture.
Thursday, Oct 30, 2025

Exclusive: London employment levels will not recover until 2023

Exclusive: London employment levels will not recover until 2023

Levels of employment in London will not reach pre-coronavirus levels until 2023 at the earliest, according to new figures from City Hall.
The Greater London Authority’s latest macroeconomic analysis, seen by City A.M., shows that London unemployment is expected to rise by 5.5 per cent by next year.

The figures show that the capital’s economy, in terms of gross value added, will contract by 10.5 per cent this year alone.

The new figures come as official UK unemployment rose by 0.2 per cent to 4.1 per cent in the three months to July, with people aged 16 to 24 the worst hit.

Economists are also concerned that the end of the government’s furlough scheme next month is set to trigger mass unemployment.

A total of 695,000 employees have been taken off UK payrolls in preparation for the end of the scheme.

Mayor of London Sadiq Khan said the latest figures from City Hall showed that the furlough scheme should be extended for sectors that cannot operate at capacity due to the government’s Covid restrictions.

“Our new analysis confirms that the economic fallout of the virus will last until a vaccine is found,” he said.

“Ministers need to wake up to the looming unemployment crisis as businesses are faced with no choice but to cut jobs as low footfall and social distancing continues.”

Business groups, such as the CBI and the British Chambers of Commerce, along with Labour are also calling for a targeted extension of the furlough scheme.

Chancellor Rishi Sunak told MPs today that he would be “creative” in protecting jobs after the furlough scheme ends, potentially hinting at a limited extension of the emergency measure.

When asked if he would provide sector specific sectoral support after the end of the furlough scheme next month, the chancellor said he had “not hesitated to act in a creative and effective ways to support jobs and employment and will continue to do so”.

Carsten Jung, senior economist at the progressive Institute for Public Policy Research (IPPR) think tank, said that ending the furlough scheme completely in October “could lead to huge avoidable job losses in London”.

“Contrary to the chancellor’s belief, an end to support schemes will not magically lead to people transitioning into new jobs,” he said.

“It will lead instead to wide-ranging disruption, both to businesses and to their workforce.

“The London economy is recovering only slowly and will need support until the virus is tamed.”

Matthew Lesh, head of research at the free market Adam Smith Institute think tank, said Khan should be focussed on “removing red tape, particularly on housing, that has held our city back for years” instead of lobbying for a furlough extension.

He added: “London’s ability to prosper will depend on rapidly and dynamically responding to new opportunities.”
Newsletter

Related Articles

0:00
0:00
Close
UK and Vietnam Sign Landmark Migration Deal to Fast-Track Returns of Irregular Arrivals
UK Drug-Pricing Overhaul Essential for Life-Sciences Ambition, Says GSK Chief
Princesses Beatrice and Eugenie Temporarily Leave the UK Amid Their Parents’ Royal Fallout
UK Weighs Early End to Oil and Gas Windfall Tax as Reeves Seeks Investment Commitments
UK Retail Inflation Slows as Shop Prices Fall for First Time Since Spring
Next Raises Full-Year Profit Guidance After Strong Third-Quarter Performance
Reform UK’s Lee Anderson Admits to 'Gaming' Benefits System While Advocating Crackdown
United States and South Korea Conclude Major Trade Accord Worth $350 Billion
Hurricane Melissa Strikes Cuba After Devastating Jamaica With Record Winds
Vice President Vance to Headline Turning Point USA Campus Event at Ole Miss
U.S. Targets Maritime Narco-Routes While Border Pressure to Mexico Remains Limited
Bill Gates at 70: “I Have a Real Fear of Artificial Intelligence – and Also Regret”
Elon Musk Unveils Grokipedia: An AI-Driven Alternative to Wikipedia
Saudi Arabia Unveils Vision for First-Ever "Sky Stadium" Suspended Over Desert Floor
Amazon Announces 14 000 Corporate Job Cuts as AI Investment Accelerates
UK Shop Prices Fall for First Time Since March, Food Leads the Decline
London Stock Exchange Group ADR (LNSTY) Earns Zacks Rank #1 Upgrade on Rising Earnings Outlook
Soap legend Tony Adams, long-time star of Crossroads, dies at 84
Rachel Reeves Signals Tax Increases Ahead of November Budget Amid £20-50 Billion Fiscal Gap
NatWest Past Gains of 314% Spotlight Opportunity — But Some Key Risks Remain
UK Launches ‘Golden Age’ of Nuclear with £38 Billion Sizewell C Approval
UK Announces £1.08 Billion Budget for Offshore Wind Auction to Boost 2030 Capacity
UK Seeks Steel Alliance with EU and US to Counter China’s Over-Capacity
UK Struggles to Balance China as Both Strategic Threat and Valued Trading Partner
Argentina’s Markets Surge as Milei’s Party Secures Major Win
British Journalist Sami Hamdi Detained by U.S. Authorities After Visa Revocation Amid Israel-Gaza Commentary
King Charles Unveils UK’s First LGBT+ Armed Forces Memorial at National Memorial Arboretum
At ninety-two and re-elected: Paul Biya secures eighth term in Cameroon amid unrest
Racist Incidents Against UK Nurses Surge by 55%
UK Chancellor Rachel Reeves Cites Shared Concerns With Trump Administration as Foundation for Early US-UK Trade Deal
Essentra plc: A Closer Look at a UK ‘Penny Stock’ Opportunity Amid Market Weakness
U.S. and China Near Deal to Avert Rare-Earth Export Controls Ahead of Trump-Xi Summit
Justin time: Justin Herbert Shields Madison Beer with Impressive Reflex at Lakers Game
Russia’s President Putin Declares Burevestnik Nuclear Cruise Missile Ready for Deployment
Giuffre’s Memoir Alleges Maxwell Claimed Sexual Act with Clooney
House Republicans Move to Strip NYC Mayoral Front-Runner Zohran Mamdani of U.S. Citizenship
Record-High Spoiled Ballots Signal Voter Discontent in Ireland’s 2025 Presidential Election
Philippines’ Taal Volcano Erupts Overnight with 2.4 km Ash Plume
Albania’s Virtual AI 'Minister' Diella Set to 'Birth' Eighty-Three Digital Assistants for MPs
Tesla Unveils Vision for Optimus V3 as ‘Biggest Product of All Time’, Including Surgical Capabilities
Francis Ford Coppola Auctions Luxury Watches After Self-Financed Film Flop
Convicted Sex Offender Mistakenly Freed by UK Prison Service Arrested in London
United States and China Begin Constructive Trade Negotiations Ahead of Trump–Xi Summit
U.S. Treasury Sanctions Colombia’s President Gustavo Petro over Drug-Trafficking Allegations
Miss USA Crowns Nebraska’s Audrey Eckert Amid Leadership Overhaul
‘I Am Not Done’: Kamala Harris Signals Possible 2028 White House Run
NBA Faces Integrity Crisis After Mass Arrests in Gambling Scandal
Swift Heist at the Louvre Sees Eight French Crown Jewels Stolen in Under Seven Minutes
U.S. Halts Trade Talks with Canada After Ontario Ad Using Reagan Voice Triggers Diplomatic Fallout
Microsoft AI CEO: ‘We’re making an AI that you can trust your kids to use’ — but can Microsoft rebuild its own trust before fixing the industry’s?
×