LONDON • Britain could see more than twice as many job losses in the coming months than in the last recession after the 2008 global financial crisis, underscoring the bleak outlook for the labour market.

Around 450,000 roles look set to be terminated in the autumn, according to analysis by the Institute for Employment Studies (IES). That was based on notifications to the government's Insolvency Service, which employers are legally required to file if they plan to cut at least 20 positions.

The figures are a stark reminder of the difficulties facing businesses after months of restrictions to slow the spread of Covid-19. The end of state wage support measures looks likely to unleash a wave of job cuts, exacerbating the sharpest economic contraction in centuries.

British finance minister Rishi Sunak is facing growing calls from industry groups and lawmakers to extend the furlough programme, under which the government has paid as much as 80 per cent of the wages of some 9.6 million workers. It is due to be wound down altogether at the end of next month.

Yet he faces spiralling costs from crisis measures that have seen government debt balloon to over £2 trillion (S$3.5 trillion) for the first time. The Bank of England's chief economist Andy Haldane said prolonging the programme could delay a much-needed restructuring.

"The sad reality is that this restructuring cannot be averted entirely, but we can do a lot more to minimise the job losses," said IES director Tony Wilson.

"We need tightly targeted support" to help firms, he added.

BLOOMBERG