The Uk economy diminished 20% in April as the country was locked down for the whole month. April will be the worst month as the country reopened the businesses and activities in May.
The UK’s economy shrank in April as the nation was totally locked down due to the coronavirus pandemic. The contraction is triple times greater compared to the economic rate in the years 2008-2009.
ONS showed the figures comparing from February to April. There is a decline of 10.4% when compared to the previous three month period.
Looking at these diminished figures the UK Prime Minister said, he is “not surprised” with the outcome. He said that, UK government always expected that this was going to be an effect of the health crisis and national economy as well.
The economic analysis showed that millions of UK workers are getting paid by the government. But still there is high unemployment that went up to 856,500 to 2.1 million in April month.
The monthly delicine in the economy affected all the sectors like education, entertainment and automobiles. Additionally, the delicine in March month was 5.8% which means, UK is totally lesser with an economy of 25% compared to February.
Unemployment In Uk
Frances O’Grady, the General Secretary of the umbrella Trades Union Congress said that it is important to focus on the hard hit sectors of the economy. There is also a need for jobs guarantees to help those who are jobless after a pandemic.
Government launched the Job Retention Scheme under which people get paid 80% of their salaries of workers who are retained. The scheme is to pay up to 2,500 pounds a month.
The scheme will be stopped 2 months later expecting the firms to contribute to the salaried persons that are retained but not working, said Chancellor Rishi Sunak. This scheme was only to avoid a spike in unemployment in the UK.
