Summer 2020 Redundancy statistics and forecasts
The outlook for UK jobs is the gloomiest in almost three decades, according to the latest employment survey by recruitment firm ManpowerGroup.
It found that companies in all big sectors of the economy are more likely to cut jobs than to hire people over the next three months, from July to September, the weakest forecast since records began in 1992.
The survey comes as companies prepare to start weaning themselves off the government’s furlough scheme, which covers the wage bill of almost 9 million workers.
The Office for National Statistics said that 'Despite the estimated fall in employment of 126,000 on the quarter, the estimated number of redundancies has not increased significantly over the period. Instead, experimental estimates based on returns for individual weeks suggest the number of respondents starting a new job declined greatly through the March to May period compared with the same period in previous years.'
Redundancies remain within normal fluctuations; however, external indicators show that redundancies might be increasing. For example the Bank of England’s Agents’ summary of business conditions for the second quarter of 2020 highlights that redundancies have been announced or have been considered in sectors such as travel and tourism, automotive, aerospace and construction.
The July KPMG REC UK Report on Jobs survey also reported a further drop in hiring activity, with redundancies and furloughed workers leading to the steepest increase in labour supply since January 2009.
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