Labour Market

Furlough extension could be “counterproductive”, says IEA expert



Dr Kristian Niemietz writes for City AM

In the Media

Professor Syed Kamall writes for Conservative Home

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.”


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