The coronavirus pandemic has affected almost every aspect of daily life. In the employment sector, there have been significant changes. Many people have found that their secure employment is not so guaranteed, and that jobs are not as common as before.
The effect of COVID-19 on the UK recruitment market as a whole is easy to see. But what is the general trend, and how are things changing? Let’s take a look at what you should know when it comes to COVID-19 and employment.
Lockdown Rules and Restrictions
The obvious impact which has come from COVID-19 has been the lockdown procedures and these rules affect your job. It’s been reported that from August to October, the unemployment rate for the UK was 4.9%, as reported by the Office for National Statistics.
4.9% may not seem like a large percentage of the population to be without a job, but that figure translates to 1,690,000 people who didn’t have access to employment. This means that all of those people would have to seek assistance from the government in the form of benefit payments, which is damaging to the treasury and the economy as a whole.
With some speculation that unemployment has not been at this level for many years, it’s not difficult to see that COVID-19 has had a substantial impact on major job losses and companies going out of business. According to Job Market Insights there were 1.1 million vacancies in November 2019 across the United Kingdom. Roll forward a year and that figure is 700,000, an incredible 400,000 less jobs for people to apply for!
The general trend is UK job vacancies have gone down, and unemployment has gone up. These are indeed worrying times.
Do furlough schemes work?
Ultimately, the furlough schemes are worth mentioning because they have changed the way in which the employment situation has panned out in the UK.
Obviously, it is nice that the government is supplying free money but it is becoming very clear that this action is reducing the incentive for people to go out and seek a job and for employers to expand. All you had to do is look at UK beach resorts this summer, “ Hey, we are getting paid for sunbathing? Lets go to Brighton!” This is not exactly going to drive the economy forward.
The effects of COVID-19 are obvious, and financially, the impact is severe. Indeed, when it comes to the global situation, it’s not a pretty picture – global borrowing is occurring on a scale not seen since World War II.
The ramifications of the coronavirus will undoubtedly continue to reverberate through the next decade or so, as the financial implications have been that severe. Only time will tell if the employment rate can be brought back down, or whether the UK will face a long hard recession.