Life after furlough
When furlough began during the early days of the pandemic in 2020, it was something we were all unfamiliar with. As time has progressed though, it is something more and more of us have experienced, including me.
Initially, the government paid 80% of the wages of those of us who could not work (up to £2,500) but this was reduced to 70% (with employers paying 10%) in July 2021, and 60% (with employers paying 20%) in August and September. On the 30th of September 2021, the scheme came to an end.
So what does that mean?
It seems that early projections of mass job cuts and redundancies simply didn’t happen. Research carried out by the British Chamber of Commerce found that one in five (18%) of companies who were using the scheme felt that they would need to make staff redundant.
However, data from the Insolvency Service, found that in September only just over 200 businesses were planning to make redundancies, close to record lows.
The data only looks at firms making 20 or more jobs redundant, which doesn’t account for 60% of the firms that used the furlough scheme.
What’s clear though, is that the firms that relied heavily on furlough, such as British Airways which claimed over £10 million in the month of June 2021, are bringing their staff back, as their industries start to reboot.
If your job wasn’t bought back after furlough
Get any support you can as soon as possible. The main benefit for anyone after losing their job is jobseekers allowance, also known as JSA. It’s not a substantial contribution (£59.20 a week if you’re under 25, and £74.70 a week if you’re over 25) but could ease the financial pressure while you seek another job.
Register with recruitment companies that specialise in your area and schedule conversations about what you’re looking for in your next role.
Has unemployment risen?
The Bank of England forecasters predicted a small rise when the furlough scheme ends. If you compare this time in 2020, with where we are in 2021, redundancies and unemployment are much lower.
However, vacancies are at a record high so for skilled talent who are entering the jobs market, it is definitely a candidate’s market.
From a recruitment point of view, I’ve definitely seen that there currently aren’t enough candidates to fill roles. From a candidate point of view, it means that now is a better time than any to look. From a client point of view, the small increase in unemployment post furlough could mean there are more brilliant candidates applying for the jobs they advertise.
Is now a good time to recruit?
With the data for smaller businesses of less than 20 currently unclear, and whether or not roles are returning at their full-time capacity there are more candidates coming into the market. Additionally, the recruitment market has been riddled with uncertainty which has meant some candidates have been hesitant to leave stable roles. Now though, with vaccine rollouts, and a more stabilised economy, there will also be employed staff who are open to new roles.
It’s been predicted that in the UK, 16 million people are due to change jobs in the next 6 months so companies are having to show themselves as more desirable than ever. Think salaries, perks, paid leave, flexibility, hybrid working options. And these can’t just be to entice new staff but to keep your loyal staff who have stuck with you throughout the pandemic.
How Exceda can support you
If you’re someone that has been impacted by the end of furlough and now finds yourself job hunting then we would love to help you to find your perfect role. Send us your CV and covering letter today.
If you’re an employer that is struggling to find candidates and is looking to hire then get in touch with us today. At Exceda we are experts in developing hiring strategies and can also work with you to improve staff retention.
