172@29@17@105!~!172@29@0@53!~!|news|world|uk-may-need-bigger-safety-net-for-jobless-after-lockdown-imf-chief-economist-gita-gopinath-5494301.html!~!news|moneycontrol|com!~!|controller|infinite_scroll_article.php!~!is_mobile=false
Moneycontrol
Subscribe to PRO at just Rs.33 per month. Use code SUPERPRO
you are here: HomeNewsWorld
Last Updated : Jul 01, 2020 09:50 PM IST | Source: Reuters

UK may need bigger safety net for jobless after lockdown: IMF's Gita Gopinath

Gita Gopinath told lawmakers in Britain's Parliament on July 1 that the first priority for governments was to scale back gradually their support programmes for workers affected by the COVID-19 crisis, including state job retention schemes

Reuters

Britain should consider increasing its unemployment benefits to help get people into the kind of work that is likely to be in demand after the coronavirus lockdown, Gita Gopinath, Chief Economist, International Monetary Fund, said.

Gita Gopinath told lawmakers in Britain's parliament on Wednesday that the first priority for governments was to scale back gradually their support programmes for workers affected by the COVID-19 crisis, including state job retention schemes.

Then, as governments seek to get people back to work, the focus should be on reallocating resources in the labour market, or moving people into jobs where demand will be strong, which would initially increase reliance on unemployment support.

Close

"In case of the UK, you could make a case for temporarily increasing the support under that because the UK has one of the lower replacement rates among advanced economies in terms of unemployment insurance," Gopinath said.

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

Britain's job retention scheme currently covers more than 9 million jobs - equivalent to around one in three private sector employees - and it is due to expire at the end of October.

Prime Minister Boris Johnson has said Britain is very likely to need a bigger employment support programme.

Finance minister Rishi Sunak is due to spell out the government's next moves to support the economy on July 8.

Follow our full coverage of the coronavirus pandemic here.
First Published on Jul 1, 2020 09:25 pm
Sections