At the end of the leave, are the problems just beginning?
It is estimated that 11.6 million jobs were laid off in 2020 as a result of Covid-19. The most recent figures available show that 1.6 million people were still participating in the program at the end of July, the lowest number since its launch.
The impact of its withdrawal today will vary from company to company, depending on their business circumstances.
A survey suggests that nearly seven in ten employers plan to make layoffs in the next year, the majority of which will occur in the coming months. The results, from Renovo, came as experts in many fields assessed the implications with worrying results.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, has hinted, for example, that any hope that the end of the program can resolve the supply chain crisis may be “wishful thinking.”
We are likely to face a wave of layoffs and increasing the number of available workers could alleviate some of the hiring problems
He said: “With long queues in forecourts, gaping holes in shelves and a million vacancies to fill, the labor shortage threatens to stifle the economic recovery. This has led to a mini flight from the pound this week, as concerns about slowing growth grow, amid a sea of rising prices.
“We are likely to face a wave of layoffs and increasing the number of available workers could alleviate some of the hiring problems, but there will likely be a great mismatch of skills and experience between those who are. thrown out of the heap of job seekers and available positions.
Peggy de Lange, vice president of international expansion at Fiverr, said this would have implications for SMEs and the self-employed. “With Furlough’s support withdrawing from this week and our research revealing that 82% of UK SMEs have suffered a financial blow as a result of the Covid-19 pandemic, it is likely that the withdrawal of this support will increase the pressure on businesses that are already struggling, ”she said.
“For the self-employed, on whom insufficient government support throughout the pandemic has had a negative impact, withdrawing the holiday regime this week as we head into the winter months could be incredibly damaging.”
Meanwhile, the data compiled by Cloud payroll specialist Staffology gave an indication of how the pandemic has affected wages in various industries.
Examining data on average weekly earnings by industries such as hospitality, transportation, retail, and the arts, the researchers found that the industry most affected by declining wages was accommodation and restaurant services (hotels), with an impact of -3.59% between 2019 and 2020.
The industry that noticed an increase in wages during the pandemic was manufacturing, which includes textiles, leather and clothing, with an increase of 4.66% from 2019 to 2020, from £ 430 per week to £ 451 per week.
The Office of National Statistics said online sales were reaching higher than usual levels during the pandemic, with online shopping accounting for 28.5% of sales in October, up from 20.1% in February.
Since 2019, the highest paid industry has always been finance and insurance, with an average weekly wage of £ 1,463 in 2021, 13.5% more than in 2019.
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