Surveys Shed Light About Prospects of UK’s Employment Levels in the Coming Months

Arslan Butt•Thursday, May 28, 2020•1 min read

The latest survey by REC offers a slight glimmer of hope for the state of businesses’ hiring and investment plans across Britain. The REC’s business confidence gauge soared from -21 during April to -10 in May, while short-term demand for permanent workers rose from -9 to -5 for the corresponding period.

While both indicators remain in negative territory, the level of pessimism appears to be easing as the UK gets ready to reopen its economy after several weeks of shutdown. Chief executive at REC, Neil Carberry expresses cautious optimism, stating, “Coronavirus has caused a huge slowdown in the labour market, but this data indicates that the worst could be behind us.”

While the REC survey offers hope that unemployment levels could recede as firms reopen for business, a separate survey from IoD reveals that businesses are struggling to pay their employees through the lockdown despite the government’s job retention scheme.

Around 50% of companies surveyed by the IoD revealed that they could provide around 20% or more of furloughed staff’s salaries between August and October, until the government runs its scheme. Director general at IoD, Jonathan Geldart, remarks, “Business leaders know that the government’s support can’t be infinite but the ugly truth is that if there’s no money coming in the door many firms will be forced to make difficult decisions.”

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Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.