16,000 people in Plymouth could be out of work by Christmas
A City Council report says it could be made worse by Brexit
The effects of the coronavirus recession facing Plymouth could be made worse by Brexit.
A City Council report predicted rising prices and an increase in families being pushed into poverty and debt.
It said the number out of work in the city could reach 16,000 by Christmas.
But the extension of the furlough scheme could reduce the impact of the coronavirus recession on jobs.
In June, around 35,000 people were on furlough – around a third of the city’s workforce.
There are fears some will not have jobs to return to when the scheme ends, particularly in tourism and hospitality.
The council report was published before the scheme was extended into next year.
Before the Chancellor’s announcement on Thursday, it was due to come to and in early December after the current lockdown.
Chancellor Rishi Sunak confirmed it would be extended to March, paying 80 per cent of a person’s wage up to £2,500 a month.
That is likely to ease the pressure on businesses in Plymouth hit by the effects of the pandemic restrictions, and delay any job losses resulting from the end of the scheme.
Nevertheless, the number of jobseekers on Universal Credit in September had doubled from a year earlier to more than 11,000.
The unemployment rate is likely to be swelled by 18-year-olds who have chosen not to go to university.
The city council is leading post-Covid recovery plans, working with 11 separate sectors of the city’s economy, and is focusing its own activity on supporting local jobs and businesses.