UK economy experienced a Summer recovery, but a tough Autumn lies ahead

Commenting on the latest GDP figures for July published today (Friday), which shows that month-on-month growth was 6.6 per cent, but that monthly GDP was still 11.7 per cent down on pre-pandemic levels, James Smith Research Director at the Resolution Foundation, said: “The UK economy continued to rebound over the Summer as lockdown restrictions eased. … Continued

The Chancellor must reconsider his plans to swiftly phase out economic support given the painful reality that the economic crisis is here to stay

Commenting on the Treasury Committee’s second interim report of its inquiry into the Economic Impact of Coronavirus, which sets a wide range policy recommendations for the Chancellor ahead of his upcoming Budget, Torsten Bell, Chief Executive of the Resolution Foundation, said: “This authoritative account of the economic impact of coronavirus should be required reading for … Continued

Self-isolation payments will help up to four million workers in low-income families – but vast majority of workers will miss out

Commenting on the Government announcement today (Thursday) that it will pay £13 a day to workers losing earnings because they are asked to self-isolate in high Covid-risk areas if they are already in receipt of Working Tax Credit and Universal Credit, Karl Handscomb, Senior Economist at the Resolution Foundation, said: “Today’s announcement is a welcome … Continued

Short courses in social care and ‘green jobs’ likely to help workers move out of coronavirus-hit sectors, though UK ill-prepared to deliver large-scale retraining programmes

The UK’s inexperience in supporting workers through career changes does not leave policy makers with a clear roadmap for tackling unemployment, although short, specific training as part of job creation schemes could help those in hardest-hit sectors, the Resolution Foundation said today (Tuesday) in new analysis on the state of training and adult education in … Continued

No signs of a July bounce-back in jobs as early indicators show UK’s labour market is in a weak position as jobs support is reduced

Response to ONS labour market statistics August 2020

Hopes that the labour market would bounce-back in July in response to the lifting of lockdown restrictions are dampened by the further loss of 114,000 people from payrolls last month, the Resolution Foundation said today (Tuesday) in response to the latest ONS labour market statistics.  Today’s data shows a mixed picture as the recovery enters a new phase. Hiring has restarted from a near stop earlier in … Continued

Bank forecasts significantly stronger than in May

Although the Bank of England today upgraded its forecasts for GDP significantly, its projections still suggest the UK has experienced one of the largest economic hits among rich countries, the Resolution Foundation said today (Thursday) in response to the Bank’s Monetary Policy Report. The Bank notes that in its central case – in which a … Continued

Over half of furloughed workers have returned to work, ahead of the Job Retention Scheme’s phase-out beginning today

Widespread reports that nine million workers are currently furloughed are wide of the mark, with over half of such workers already likely to have returned to work, according to new Resolution Foundation research published to coincide with the beginning of the phase-out of the Job Retention Scheme (JRS) today (Saturday). Today marks a big shift … Continued

UK households have experienced the biggest immediate income shock since the mid-1970s

Policy response has massively boosted poorest households’ incomes, but further shocks lie ahead

The covid-induced crisis has caused typical working-age household incomes to fall 4.5 per cent between the pre-crisis period and May this year, despite the critical policy support that has cushioned the shock for millions of households, according to the Resolution Foundation’s Living Standards Audit published today (Tuesday). The Living Standards Audit 2020 considers the position … Continued

Headline unemployment measures are failing to show the true extent of Britain’s jobs crisis

The UK’s headline unemployment measure is significantly understating the recent rise in joblessness, while the often-used claimant count measure is hugely overstating the increase, according to a new Resolution Foundation report published today (Thursday). With changes to people’s employment status arguably the most important indicator of the state of the economy for most households, The … Continued

OBR sets out the scale of economic and fiscal damage – and of the gamble the Chancellor has taken on jobs

The Office for Budget Responsibility’s (OBR) latest outlook points to the biggest economic contraction in 300 years and unemployment matching its 1980s peak, highlighting the Chancellor’s gamble in not taking a bolder approach to tackling Britain’s jobs crisis, the Resolution Foundation said today (Tuesday). In three scenarios for the length of the crisis and the … Continued

Government’s Kickstart scheme could help 350,000 young people into work – but it needs to be delivered quickly

Commenting on the Government’s announcement of a new Kickstart Scheme to help young people into work, Kathleen Henehan, Economist at the Resolution Foundation, said: “Young people have been hit hardest by Britain’s growing jobs crisis, with three-in-ten 18-24 year olds furloughed, and one-in-ten already having lost their jobs. So, action to keep youth unemployment down … Continued

Huge generational living conditions divide exposed by Covid-19

The pandemic has exposed a huge generational divide in living conditions across Britain, with young people locked down with half the space and three times the risk of damp than older age groups, while renters have seen their mental health deteriorate, according to new Resolution Foundation research published today (Friday). Lockdown Living, funded by the … Continued

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