UK Job Losses & Potential Future Outcome
Posted on 1st September 2020
Who would have thought that 2020 would bring so many challenges? Families, individuals, and businesses have all been tested in ways that no one anticipated. As has been the case across much of the world, COVID-19 has impacted the workforce in the UK dramatically, with mandatory lockdowns in place and businesses unexpectedly ceasing operations. But what does this mean for the future?
How COVID-19 Has Affected the UK Jobs Market
On the one hand, we close down part of the economy to avoid spreading the virus and avoiding casualties, resulting in the prospect of not being able to put food on the table for your family. On the other hand, if we keep businesses open and return to work, we potentially risk the lives of millions of people. Moving forward, it's a double-edged sword and a precarious balancing act between the lesser of two evils!
Current Status of Job Losses in the UK
Approximately 7.6 million jobs have been lost, equating to almost 24% of the UK's workforce due to the COVID-19-related economic consequences. ¹
Between February and May of 2020, economic activity has dropped by roughly 30 percent, causing nearly 23 percent of businesses to stop business operations entirely, and overall GDP dropped around 9 percent. ²
According to Reuters.com, the number of employees on company payrolls between March and June has decreased by nearly 730,000, indicating that there are potentially much more severe redundancy numbers on the horizon. ³
Furthermore, the wholesale, retail, and food/restaurant industries have been hurt the worst with by far the most substantial proportion of furloughs as compared to the rest of the economy. ⁴
So, What Does This Mean for The Future?
Consider an individual getting severely ill and how it affects their lives. They have to stop, rest, sleep, eat, and drink lots of fluids while following specific advice from their doctor(s). The result is lost work, an ever-expanding list of chores, and dates and deadlines are pushed until further notice.
Taking this example and applying it to the state of the UK economy, chances are things will follow a similar path. The question is, how long until we find a vaccine? According to the latest reports, vaccines are estimated to be ready by the end of the year.
So, what does this mean for the economy until a vaccine is found? The likelihood is that other industries that can operate during the COVID-19 pandemic will be what keeps the economy stuttering forward.
Businesses will be forced to adjust to conditions by offering services online and offering assistance with touchless and contactless services between employees and customers. If we know anything, it's that the UK government will continue to adjust its sails in its bid to strike the balance between putting food on our tables for our families while also keeping the spread of COVID-19 to a minimum.
For businesses, consider expanding your line of products or services to aid the efforts to overcome this pandemic, such as selling masks, protective wear, offering services online, and providing contactless services.
For individuals, perhaps you can consider looking for jobs that offer remote positions that can be based either in the UK or even the US. By considering remote job positions, you open up your job opportunities to multiple countries and the increase your ability to provide an income for your family.
Tagged as: News
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