London Daily

Focus on the big picture.
Wednesday, Jun 03, 2026

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
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
Global Critical Mineral Alliances Expand as Western Nations Move to Counter Chinese Supply Dominance
United States Imposes Fifty Percent Tariffs on Mexican Steel and Aluminum Ahead of Trade Pact Review
European Union and China Head Toward Major Trade Conflict Over Clean Technology Exports
United States Economic Growth Severely Downgraded to One Point Six Percent as Stagflation Fears Mount
World Health Organization Warns Central African Ebola Epidemic is Outpacing Containment Efforts
United States Treasury Department Conditions Sanctions Relief on Reopening of the Strait of Hormuz
Iranian Air Defenses Intercept and Destroy United States Military Drone Over Bushehr Province
Iranian Armed Forces Launch Ballistic Missiles Toward Unspecified Targets Prompting Regional Condemnation
United Nations Secretary-General Warns Global Order Facing Highest Level of Conflict Since 1945
Israel Issues Sweeping Evacuation Orders in Southern Lebanon Amid Intensified Hezbollah Conflict
Russia Announces Systemic Military Strikes Targeting Ukrainian Defense and Energy Infrastructure
United States and Iranian Negotiators Reach Draft Agreement to Extend Ceasefire and Resume Nuclear Talks
United Nations Security Council Deeply Divided Over United States Capture of Venezuelan President
US and Iran Exchange Direct Military Strikes Amid Fragile Gulf Ceasefire
World Health Organization Warns of Catastrophic Ebola Outbreak in DR Congo
Russia Threatens New Wave of Strikes on Ukrainian Infrastructure and Embassies
Scientists Warn Atlantic Ocean Currents Could Collapse Faster Than Projected
Anthropic Reaches $900 Billion Valuation in Historic AI Funding Round
Washington Imposes Crippling Sanctions on Iranian Maritime Authority
Japan and the Philippines Initiate Strategic Intelligence-Sharing Pact
Microsoft Deploys Autonomous Computer-Using AI Agents to Global Markets
Anthropic Secures $45 Billion Compute Infrastructure Agreement With SpaceX
U.S. Director of National Intelligence Resigns Amid Administration Shakeup
Micron Technology Crosses Trillion-Dollar Valuation Amid Unprecedented Hardware Demand
Canada and Germany Finalize Historic Long-Term LNG Export Agreement
China Expands International Travel Restrictions on Domestic AI Researchers
Japan Approves Sweeping Overhaul of National Intelligence Apparatus
Global Airlines Scramble Logistics as Middle East Airspace Remains Fractured
Japan's Naphtha Imports Plunge 47 Percent Amid Strait of Hormuz Closure
Global Crude Prices Retreat Below $96 as Gulf Tensions Momentarily Ease
Generative AI Outperforms Human Baselines in Landmark Global Creativity Study
NASA Partners With Private Aerospace to Unveil Permanent Lunar Base Architecture
South Korean Equity Markets Surge on Next-Generation Memory Chip Frenzy
×