The government is now reducing its contribution to the scheme, with employers having pay 10% from July and 20% from August
Ending the furlough scheme too early could damage the recovery and push unemployment higher, trade unions warned as official figures showed the number of workers on the scheme in May fell at a slower rate than expected to 2.4 million employees.
Without an extension of the furlough scheme or extra support for the hardest hit industries, the bounce back on economic activity could be choked off, unions said.
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