UK furlough scheme cushions Covid blow, but job losses loom

Analysis: Rishi Sunak's measures have held unemployment down, but cliff edges create instability

It is clear from the latest unemployment figures that the furlough scheme is working. With more than 5 million people on the government's main wage subsidy, it has proved its worth yet again as a method of job protection, cushioning the blow from the pandemic as the UK entered a third lockdown.

Thousands of British companies have learned from the first two lockdowns. They have adapted to life online and kept goods and services moving, albeit mostly within the boundaries of the UK after the government left exporters to deal with the worst possible exit from the EU short of leaving without a deal.

Related: UK unemployment falls for first time in Covid-19 pandemic