With the slump in economy for last two quarters, UK is likely to announce being in recession since 2008.
The United Kingdom is likely to officially announce being ‘in recessing’ after consecutive job losses in the last couple of months since April, 2020.
According to Office of National Statistics, an estimated 730,000 jobs were lost over the months following the first quarter with the economy plummeted to 21% from April to June.
With the Coronavirus pandemic which forced lockdown in the early stages of its spread, jobs have been lost continuously, notably the car production was the slowest since 1954 with the shutdown of factories.
The worst hit has been the service sector which hit the biggest quarterly decline in recent times with closure of shops malls hotels etc.
Also Read: Russia Registers First Vaccine For Covid-19: Putin’s Daughter Takes First Shot
While the Office of National Statics (ONS) states that the economy is now at 22.1% which is lesser than in February 2019, and the lowest in western Europe so far.
Though there has been a slight cheer of economy bouncing back with reopening of shops and factories since June, Prime Minister Boris Johnson had cautioned of ”bumpy months ahead” signaling it would take some time for the economy to bounce back and had urged people to get back to work.
Chancellor Rishi Sunak also stated that it has been a tough time right now and hoped to see the return to economic vitality and health.
With quite a lot of people wanting to work and not finding one, the reopening of businesses and services since June shows a growth of slightly better than 8.7% in June following an upward move of 2.4% in may with lockdown measures eased.
However, according to Jonathan Athow from ONS, ”there has been a rise of people looking for job or working for zero hours and zero pay.”
Also Read: Waxham Death: Mother Drowns Trying To Save Son, Friend From Kayak Accident
