Employers planned to make the fewest job cuts for seven years last month, suggesting that the end of the furlough scheme will not trigger a sharp rise in unemployment.
Figures show that 12,687 jobs were earmarked for redundancy in August, down 11 per cent since July, according to the Insolvency Service.
The numbers indicate that the previously anticipated surge in unemployment is unlikely to transpire because the furlough scheme has been extended to the end of September, giving businesses ample time to resume hiring as the economy emerges from lockdown.
Many sectors, including logistics and hospitality, are struggling with labour shortages and are having to put up prices as they struggle to meet a surge in post-lockdown demand.
In its latest Monetary Policy Report,
