From September, the number of unemployed citizens in Europe will increase due to the job retention program introduced during the pandemic.

Analysts from The Economist Intelligence Unit (EIU) predicted that the average unemployment rate in France, Italy, Spain and the UK will rise from 9.2 percent in 2020 to 10.1 percent in 2021.

In 2020, at the peak of the pandemic, European countries sent employees on temporary leave to save jobs. Government programs in France, Germany, Italy, Spain and the UK covered about a third of the workforce. It was assumed that after the removal, however, the pandemic accelerated the automation of sectors and changed the structure of consumption. Firms that have become more efficient during lockdowns may be reluctant to return staff to work. Analysts surveyed British entrepreneurs who participated in the government program. Of these, almost 20 percent said they would cut staff, and another 20 percent are ready to offer employees only part-time work.

Production has returned to pre-pandemic levels, but a large number of workers are still on leave. Researchers speculate that some of these employees will be laid off after the program ends on September 30.

The UK has already faced massive unemployment. At the same time, a paradox arose in the labor market of the United Kingdom: despite the increase in the number of unemployed citizens, the number of open vacancies reached a record level. The country’s staff shortage is 14 times the normal level, and wages are steadily rising. With restrictions, employees will return to their jobs.