Analysis of: Redundancy plans fall after furlough extension

Original article: https://www.bbc.co.uk/news/business-55412640

This article outlines and explains how less people were made redundant in November than in many months prior; the explanation for this phenomenon is believed to be the government furlough scheme.

The article says ‘In total 36,700 redundancies were proposed last month, down from a peak of 156,000 in June’. This decline is massive and it shows that people have gained more confidence as there is less uncertainty surrounding the virus. The decline in workers made redundant also shows that some businesses have adapted to the new times. This figure was released before the December lockdown, so the number may have increase the next month.

The furlough scheme, in which the government pays a large proportion of your salary when your employer cannot, was supposed to end at the end of October. However, the government extended the scheme until the end of April 2021. This life saving scheme increased business confidence significantly which may be the reason less workers were fired in November.