What’s happening to the labour market?
geralt (CC0), Pixabay
Its pretty hard guessing the future of the labour market at the moment. How bad is the downturn from the Convid 19 pandemic going to be. Will there be U shaped recession or will there be a rapid V shaped recovery. Who will be hit hardest? What will happen to the hospitality and travel industries. What kind of policies might mitigate against a recession. And what kind of education and training measure are needed?
Things are slowly becoming clearer. And the indicators are not good.
The Brighton based Centre for Employment Studies (CES) released a briefing note today using newly released data from employers planning 20 or more redundancies alongside historic estimates of actual redundancies, in order to estimate the potential path of job losses this year. The CES were only able to obtain the data from the government followin a Freedom of Information request. Estimates of the actual historic level of redundancies are taken from the Labour Force Survey.
Their analysis suggests that redundancy notifications by employers are running at more than double the levels seen in the 2008/9 recession, the vast majority of which is a consequence of the covid-19 pandemic and its economic impacts. The CES estimates that this may lead to around 450 thousand redundancies in the third quarter of 2020 – significantly higher than the quarterly peak in the last recession (of just over 300 thousand) – and a further 200 thousand redundancies in the final quarter of the year.
Among measure that they suggest are needed to deal with the employment crisis is guaranteed access to rapid, high quality employment and training support for those facing redundancy.
The full report can be downloaded here.
