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Economic Development

The two North West sectors about to be 'rocked' by even more redundancies as furlough ends

There are warnings the North West's retail and manufacturing sectors will be worst hit when the furlough scheme ends this autumn

The North West needs investment in areas from skills to infrastructure and support for SMEs to get it through the coronavirus pandemic

The North West will be "rocked" by redundancies in the retail and manufacturing industries as furlough is withdrawn this autumn, it's been claimed.

The region has the highest proportion and number of people working in the two sectors in the º£½ÇÊÓÆµ, standing at 20% of the North West's entire workforce - around 670,000 people in total, according to data from the Office for National Statistics.

The two sectors combined have so far made an estimated 33,500 redundancies across the country during the pandemic, and the Labour Party expects this number to rise, with the Government set to "indiscriminately severe" the furlough scheme, with the hard stop to take effect in October.

Around three-quarters of employers in those sectors used the government’s job retention scheme, so Labour has now called on the government to urgently target support at the hardest-hit sectors.

Matthew Pennycook MP, shadow business minister, said: “The government is writing off the North West as the country enters recession, with the figures suggesting these communities will be disproportionately hit by the jobs crisis.

“Labour is calling for the government to u-turn on its damaging blanket approach to withdrawing furlough, which fails to consider the circumstances of different sectors or the impact on the communities that have a proud history in these industries.

“The government needs to do right by these communities and businesses, and see them through the crisis by targeting support, not pull the life raft away while the storm is still raging on.

Social Distancing signs in Liverpool city centre on Lord Street.(Image: Colin Lane/Liverpool Echo)

"The º£½ÇÊÓÆµ already has the worst regional inequalities in Europe and without targeted action, this is likely to get even worse."