U.K. Furlough Extension Is Key to the Economic Recovery

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U.K. Furlough Extension Is Key to the Economic Recovery

One reason to expect a quick U.K. recovery is the government’s decision to extend the furlough program by five months to the end of September. That will prevent a large increase in unemployment in the spring as the recovery takes hold while giving gross domestic product more time to gather momentum before the program expires. Bloomberg Economics now sees the jobless rate peaking at 6% in the fourth quarter, rather than 7.5% in the second before furlough was extended.

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