How has the UK jobs market been impacted?

Before the coronavirus pandemic hit, the jobs market was incredibly buoyant, with statistics indicating that employment was at an all-time high. However, sadly the tides have turned with a number of employees recently losing their jobs or being placed on furlough as a result of the global pandemic.

Figures released by the ONS in June discovered that for the three months ending April 2020, the highest employment rate estimate in the UK was in the South East (79.5%) and the lowest was in Northern Ireland (71.6%). It also revealed that for the three months ending April 2020, the highest unemployment rate estimate in the UK was in the North East (5.2%) and the lowest was in Northern Ireland (2.3%); a joint record low unemployment rate.

Due to the closure of many businesses across the UK, including retailers, gyms, restaurants and pubs, these outlets have felt the severe brunt of coronavirus, while the tourism industry has struggled to stay afloat as international travel was stopped. For example, British airline Flybe announced it had gone into administration this year after struggling with the outbreak, meanwhile Sir Richard Branson announced plans to remortgage his private Caribbean island to raise money to help his Virgin Group business, which includes the Virgin Atlantic airline, survive.

To give you an idea of how the jobs market has changed over the last few months, we have compiled a list of some of the key stats and trends:

75.3% of Brits feel stressed about trying to find a new role in the current climate.
CV Library

Research has revealed the jobs and companies which have seen the biggest increase in searches since the UK entered lockdown (March 23, 2020), with ‘NHS Volunteer Job’ seeing a 355% increase and ‘Fruit Picking Jobs’ seeing an 843% increase.
Debut Careers

The new Improving Quality of Hire through Recruiting Enablement report revealed that 63% of businesses believe that identifying and attracting quality hires is the greatest challenge they face.
Aptitude Research and Oleeo

Delivery driver, warehouse operative, sales development representative, risk analyst and retail assistant are the top five most applied for jobs in the UK.
LinkedIn

In the COVID-19 Business Reaction Report, 54% of the businesses that took part in the survey revealed they have had to furlough staff and, worryingly, are only expecting to reactivate 60% of those furloughed.
IsoNation

Data has found that as many as one in five contractors are anticipating having to close their business down because of the crisis.
University of Edinburgh Business School and the Association of Independent Professionals and the Self-Employed (IPSE)

What does the future hold?

With a new decade comes a desire for change and a lot of people had big intentions for 2020. Whether that was to find a new job, set-up a new business or embark on an exciting new career path. Sadly, the coronavirus pandemic has flipped the world on its head and forced people to abandon these plans, which is resulting in a lot of angst and uncertainty.

For employers and recruiters, the fact that more people are wanting to change jobs is a massive positive, but we know that organisations are already making difficult decisions around their existing workforce. While job vacancies are starting to pick back up, opportunities have been limited over the past few months and this is naturally making job seekers feel nervous.

For help or advice on your business or career options, please contact us for some support.

Executive Grapevine