Bailey says BoE 'very worried' about jobs

The Governor of the Bank of England has told school pupils the economy is starting to recover but that the central bank was extremely worried about unemployment.

During an online talk for school students Andrew Bailey said: “We are seeing the economy come back now somewhat, because obviously the restrictions are beginning to be lifted … But there’s a long way to go. We are very worried about jobs, as are a lot of people.”

Bailey's comments, made in a talk hosted by Speakers for Schools, reflect widespread concern that unemployment will rocket when government support ends for more than 9m workers laid off temporarily during the crisis. A string of big names, including Boots, John Lewis and Rolls-Royce, have announced thousands of job cuts because of expected low demand as Covid-19 takes its toll on the economy.

Bailey made his remarks, reported by Reuters, with official labour market statistics due this week along with figures for inflation and GDP. The Covid-19 crisis is likely to send unemployment up to 11.7% in 2020 even if there is no second wave of the virus, according to the Organisation for Economic Cooperation and Development.

Chancellor Rishi Sunak's mini-budget on 9 July was billed as a "plan for jobs" but economists have said his measures may be too timid to stop a torrent of job cuts.