London Daily

Focus on the big picture.
Saturday, May 31, 2025

Planned job cuts fall despite furlough deadline

Planned job cuts fall despite furlough deadline

August saw the lowest figure for proposed job cuts for seven years, despite the imminent end of the government's furlough scheme.

Figures published by the Insolvency Service show that British employers planned 12,687 job cuts in August, a fall of 11% since July.

The data suggests that the predicted surge in unemployment this autumn may be smaller than expected.

At the height of the pandemic, firms proposed over 150,000 job cuts a month.

Employers planning to make 20 or more staff redundant have to notify the Insolvency Service when they start the process.

The number of cuts they propose gives an early indication of where the job market is heading, long before official unemployment data, which is several months behind.

August was the first month in which firms with staff on furlough were required to pay 20% of their wages, as well as pension and National Insurance contributions.

The scheme ends altogether at the end of September - at this point employers will have to decide whether to pay all their workers' wages themselves, or let them go.

The latest available data shows that 1.9 million workers were still on furlough at the end of June, and experts had predicted that many of them would end up being made redundant.

But just 12,687 job cuts were proposed in August - the lowest number for seven years.

So an autumn surge seems less likely now, said Tony Wilson, director of the Institute for Employment Studies.


"Given the exceptionally high labour demand and fewer people in the labour market due to the crisis and Brexit, unemployment is going to keep falling back over the next few months even as the furlough scheme winds up," he said.

"The end of furlough may well slow or reverse that decline, but the biggest issues in the labour market now are that there's not enough workers rather than not enough jobs."

A number of companies have been reporting problems finding enough workers, with the employers' organisation the CBI warning that staff shortages could last another two years.

Vacancies are at record highs as employers struggle to find workers

The number of vacancies is at a record high, according to recent figures.

The low number of redundancies being proposed is yet another piece of evidence that the UK jobs market is rebounding much more strongly than experts had dared to hope a year ago.

In total, 201 forms notifying redundancies were filed by 143 different employers. Both are among the lowest figures on record.


Until recently, figures for proposed redundancies were not routinely published in the UK, except in Northern Ireland.

Last year the BBC began requesting these figures through the Freedom of Information Act, revealing the extraordinary increase in redundancy plans through the spring and summer of 2020.

This year, the Insolvency Service has started to publish these figures every month on its website.

The data only covers firms proposing 20 or more job cuts, so smaller firms are not picked up by these figures. Employers sometimes end up making fewer redundancies than they initially propose, but they cannot make more than they propose.

The figures are not classified as Official Statistics, which are subject to rigorous quality control procedures.

Data for Northern Ireland is published by the Northern Ireland Statistics and Research Agency as part of its monthly Labour Market Report.

Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×