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Virus-hit economies brace for second wave of job losses

A second wave of job losses could hit developed economies even when governments begin to lift lockdowns, as businesses reassess their ability to operate in an era of continued social distancing, economists have warned.

Figures released this week showed the mounting damage to labour markets resulting from measures to slow the spread of coronavirus.

In the US, more than 3.8m people filed new claims for jobless benefits, taking the six-week total since the start of the lockdowns to more than 30m. In Europe, official unemployment data understate the extent of the disruption, but figures given by national governments in the five largest economies show that more than 35m workers are having part of their wages paid by the state through schemes that allow employers to furlough staff and reclaim the cost.

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