The good news is, the world seems to be getting back to some normality on the employment front with business’s returning employees safely where they can. Even “higher risk” sections of the economy such as hospitality and catering are returning to normal and from an economic point of view – this can only be a good thing.
However, with the winding down of the various supports that were put in place, especially the furlough scheme all eyes are turning to what this means to employment statistics!
So, what is happening? Well on 23rd March 2020 (when “peak-Covid” hit), the Government announced that all UK companies could essentially lay-off their employees on a temporary basis and claim back 80% of their wages. Statistics show that over 1 in 4 workers were being paid by the Government at some point during this period.
The support employers were given has been reduced from August and will gradually be tapered away between now and 31st October 2020.
Now that support is being withdrawn, we have already seen some of the countries largest employers announce redundancies (think Marks & Spencer, British Airways, Rolls Royce, Ryanair & Easyjet for example). The big economic question now is how bad will this get? It would appear productivity in the private sector will be able to absorb this and the huge infrastructure spending now being announced will also help, the important thing is that we keep an eye on these figures and alter investments strategies as a result! As always, its what we do….contact your local experts to ensure your very own Financial Fortress!