UK faces an unemployment shock – and ending furlough will worsen it

Scheme has given firms breathing space in Covid crisis, but Treasury won't extend it

Rising unemployment is a slowly unfolding crisis. For many employers, decisions about redundancies and hiring have taken a back seat while they consider how to survive the pandemic.

The cushion of the government's furlough scheme has also provided them with some breathing space, allowing them to send staff home and take a longer look at how many they think they might need.

Related: UK redundancies rise at fastest rate since 2009 amid Covid crisis