Job Market

Unemployment may be ‘larger than forecast’, says Bank of England

Unemployment figures may be “larger than forecast”, according to one senior expert from the Bank of England.

Gertjan Vlieghe, a member of BoE’s Monetary Policy Committee, suggested that unemployment will be worse than expected when speaking about the health of the economy yesterday (20 October).

So far, the UK’s unemployment rate has increased to 4.5% during the three months to August, according to the latest figures from the Office of National Statistics (ONS).

Despite two-thirds of furloughed employees returning to work, 2 million employees have still not gone back to the workforce.

Vlieghe said: “To be clear, we do not expect the 9 per cent of private sector workers who are currently on furlough to lose their jobs. We expect many of them to either be re-employed by their current employer, or to find new work relatively quickly.

“There is huge uncertainty about the scale of job losses, in both directions, but in my view, the risks are skewed towards even larger losses, implying even more slack in the economy than in our central projection.”

 

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