The scheme would echo 23 similar schemes which already exist in countries around the world, and would protect the UK economy through the transition to net zero, technology-led economic disruptions and from future pandemics.
The body warned of high levels of job losses when furlough ends, echoing a similar caution on arrears out today from lender association UK Finance.
It said the proposed new, ongoing scheme would protect incomes, cap job losses and prevent economic inequalities from deepening, in times of crisis.
Frances O’Grady, general secretary of the TUC, said: “Setting up a daughter-of-furlough scheme, to provide certainty to workers and firms through future industrial change, would be a fitting pandemic legacy.”
Captain Mark Chalk, acting general secretary at the British Airline Pilots Association, said: “UK aviation employs a million workers, with 57 per cent remaining on furlough. The scale of jobs at risk when the scheme ends is self-evident.
“If the Chancellor chooses not to extend furlough, effects will be felt right across the country.”