Covid-19: Level five restrictions threaten budget unemployment forecasts       

Economists warn the toughest level of controls over the key Christmas trading period will lead to significant business failures

Kieran McQuinn: ESRI official forecast unemployment to settle at around 12% at the end of December. Picture: Sasko Lazarov

Unemployment will likely exceed the Government’s budget forecasts if level five restrictions are put in place, as retail and hospitality firms never reopen, leading economists have warned.

In its budget forecasts this week, the Government projected unemployment would remain at an elevated level this year, with the loss of around 319,000 jobs, and an average unemployment rate of 10.3% in 2021.