News

As of 16 August 2020, published Coronavirus Job Retention Scheme (CJRS) data shows that 9.6m jobs were furloughed, 1.2m employers were furloughing staff and £35.4bn had been claimed.
These are astonishing statistics.

Unemployment currently stands at just under 3m. It is a sobering thought that when the CJRS is finally withdrawn at the end of October, many more will be added to the list of those claiming unemployment benefits and it is almost a given that the 3m unemployment range will be breached by a significant margin.

Many of your clients will be agonising over this issue: who to retain, who to let go when CJRS funding is no longer available.

Unfortunately, there will be no even spread of unemployment across the economy. As we have witnessed, it is certain sectors that will be badly affected: entertainment, hospitality and travel are prime examples. And these as a combined contributor to GDP are hugely significant.

Practitioners will no doubt be working closely with clients to resolve planning, who to retain, who to lay-off, but the process depends on formulating expectations for a return to more stable trading conditions. Coronavirus disruption and Brexit are reducing such efforts at planning into no more than gazing into a crystal ball.

Practitioners are in a unique position to step up and support businesses through these difficult times as we are undoubtedly in for a bumpy ride in the coming months.

Source: New feed