Second Wave of Pandemic Hits UK Labor Market
Arslan Butt • 1 min read
The second wave of coronavirus underway in the UK has already started impacting the labor market once again, with companies cutting down on hiring plans for permanent workers. According to a recent survey by the REC and KPMG, the measure of temporary hiring rose to the highest level seen since December 2018, with British firms hesitant to take on permanent staff in the wake of the ongoing uncertainty.
Companies have been posting fewer vacancies to hire permanent workers, even though they seem better prepared to handle the second round of lockdowns. Meanwhile, with an abundance of candidates looking for work, starting pay being offered has also declined.
Chief executive at REC, Neil Carberry, observes, “We face a challenging winter and temporary work will be a vital tool for keeping businesses going and people in work. All businesses are looking to Government to use the lockdown wisely and provide the Test and Trace system, vaccine and economic support that firms will need if they are to drive our recovery in 2021.”
The British government has so far announced a one-month extension on its job subsidy scheme to combat the rising unemployment level in the country. In addition, markets are widely anticipating that the BOE could increase the scope of its bond purchase program to prop up the British economy which has weakened due to the ongoing pandemic.