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szdaily -> World Economy -> 
UK’s low-paid workers take the brunt of virus fallout
    2020-05-13  08:53    Shenzhen Daily

ALMOST a quarter of jobs in the United Kingdom are at risk due to coronavirus, and those earning low incomes are the most vulnerable, according to McKinsey.

About 7.6 million workers are exposed to a reduction in hours, being furloughed or permanent layoffs during lockdown, the analysis published Tuesday found. Nearly half those jobs are in occupations earning less than 10 pounds (US$12.36) an hour — below the target rate for the national minimum wage.

“We are looking at a crisis which inevitably will increase inequalities, unless we can mitigate those impacts,” Tera Allas, director of economics and research at McKinsey, said on a video call with reporters.

The government is currently paying the wages of furloughed workers, in an effort to stop the coronavirus crisis creating mass unemployment. Officials are considering gradually tapering support to avoid a cliff edge when the current program ends June 30.

Ministers should extend the scheme until early August and have it exist in some form until the end of September as lockdown restrictions are lifted, the Resolution Foundation urged in a separate report.

While U.K. households are spending more on groceries, entertainment and arts and crafts, expenditure overall has fallen by 31 percent per person, A report by Legal and General showed.(SD-Agencies)

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