Furlough extension could be “counterproductive”, says IEA expert
17 December 2020
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Healthcare
Dr Kristian Niemietz writes for City AM
17 December 2020
In the Media
Professor Syed Kamall writes for Conservative Home
18 December 2020
Lifestyle Economics
15 November 2024
Responding to the news that the furlough scheme will be extended until the end of April 2021, Professor Len Shackleton, Editorial and Research Fellow at the free market think tank the Institute of Economic Affairs, said:
“The extension of the furlough scheme is further sad evidence that we are going to continue in lockdown-by-any-other-name for many more months.
“By the end of April some people could in principle have been furloughed for a full year, an extraordinary state of affairs. While such individuals will be few and far between, there will be millions who will have spent many months at home at public expense, while skills atrophy and health and morale suffer.
“Announcing the continuation of this form of suspended animation makes it less and less likely that jobs can be maintained in those organisations most affected. It may well be counterproductive as more and more businesses realise that there is no end in sight and they may as well bite the bullet, dismiss workers and restructure or even close down.”
ENDS
For media enquiries, please contact Emily Carver, Head of Media, on 07715942731 or ecarver@iea.org.uk.
IEA spokespeople are available for further comment and interview.
For further IEA reading on Covid-19 and employment, click here.
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems. The IEA is a registered educational charity and independent of all political parties.
“The extension of the furlough scheme is further sad evidence that we are going to continue in lockdown-by-any-other-name for many more months.
“By the end of April some people could in principle have been furloughed for a full year, an extraordinary state of affairs. While such individuals will be few and far between, there will be millions who will have spent many months at home at public expense, while skills atrophy and health and morale suffer.
“Announcing the continuation of this form of suspended animation makes it less and less likely that jobs can be maintained in those organisations most affected. It may well be counterproductive as more and more businesses realise that there is no end in sight and they may as well bite the bullet, dismiss workers and restructure or even close down.”
ENDS
Notes to editors
For media enquiries, please contact Emily Carver, Head of Media, on 07715942731 or ecarver@iea.org.uk.
IEA spokespeople are available for further comment and interview.
For further IEA reading on Covid-19 and employment, click here.
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems. The IEA is a registered educational charity and independent of all political parties.
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