Tag: jobs

Tory plans to Power up Scotland

Scottish Conservative leader Douglas Ross today launches his first major policy paper, an ambitious jobs and economic recovery plan to “Power up Scotland” and rebuild the economy stronger.

As the Scottish Government prepares to announce its Programme for Government tomorrow, Douglas Ross has put forward a series of proposals to support and create jobs, promote business recovery in the short-term, and build a thriving, stronger Scottish economy long-term.

The Power up Scotland jobs plan, which Douglas promised to deliver within a month of his election as Scottish Conservative leader, will be published today at a manufacturing plant in Inverness and includes the following policies:

  • Sector-specific Job Security Councils to help laid-off workers transition and find skilled work, based on Sweden’s hugely successful retraining programmes.
  • A Town Centre Rescue Plan to help small local shops adapt and free up planning restrictions.
  • A ‘Scotland First’ procurement strategy to have the government spend more money locally.
  • A Scottish education guarantee to age 18 and expanded adult learning programmes.
  • Community Right to Buy schemes for local pubs and other employers in fragile areas.
  • Scottish Enterprise reformed on regional lines and new Rural Growth deals to spread high-quality jobs and business growth across the country.
  • A yellow/red card system for businesses who make late payments and bid for public work.
  • A new research and development target with better incentives for innovation.
  • A Hardship Fund for businesses facing localised lockdowns.

The new Scottish Tory leader also called yesterday for accelerated infrastructure investment with proposals for a three-lane M8, a Scottish Smart Travel Card for contactless travel, faster rail links from Edinburgh to Aberdeen and Inverness, and a joint UK-Scottish Government infrastructure vehicle.

Scottish Conservative leader Douglas Ross said: “In the biggest economic downturn of our lifetime, the UK Government stepped up and protected nearly a million Scottish jobs. Now the Scottish Government must match that ambition.

“My proposals won’t just protect jobs over the next few months, they will power up the Scottish economy and start creating the jobs of tomorrow, today. This detailed blueprint for the next phase of recovery will help workers retrain and find new skilled work, give town centres the tools they need to rebuild, and take every part of Scotland forward together. 

“I will work with the Scottish Government on these proposals wherever possible but there is a clear contrast between what we see as Scotland’s priorities.

“I don’t believe Scottish people want a government that drags us back to the division of the past and wastes time on constitutional wrangling.

“I believe people want both of Scotland’s governments to co-operate, not compete. They want us to hand power back to communities, not hoard it in Edinburgh. They want long-term strategies that build for the future, not sticking plaster proposals that prove to be second-rate.

“Most of all, I believe Scottish people want action on jobs, now. They don’t want delays and excuses.

“This is a time of crisis for Scotland – but a moment of opportunity too. If we focus on the urgent priorities of Scottish people, we can restore and rebuild our economy stronger than ever.”

It’s hardly surprising that the Scottish Conservative economic plan has the enthusiastic support of Lothian Tory MSP Miles Briggs, who said: “Edinburgh and the Lothians have huge economic potential that we need to see optimised as Scotland enters a recession.

“This is a comprehensive economic plan from Douglas Ross that has measures to improve connectivity across Scotland and pass powers back to local regions and communities.

“SNP Ministers have been ineffective in developing Scotland’s economy and maximising the potential of businesses and growing industries.

“This plan is a clear commitment from the Scottish Conservatives that the economy and people’s livelihoods will be our number one priority going into the Scottish elections next year.”

Power-up-Scotland-Aug-2020Download

Great jobs that don’t require a degree

According to teen magazine Future-Mag, more than half (54 per cent) of graduates say they’d think again about choosing university as the best way to find a job. 

If you don’t fancy another three years of study, can’t face the debt, or didn’t get the results you were expecting, don’t worry. There are plenty of routes into careers that that don’t require you to have a degree.

These new opportunities are partly thanks to a rise in apprenticeships since the government has invested more in professional training. 

Here’s a line-up of some top jobs you can do without a degree:

1.       Nurse

The Lowdown

If you’ve been thinking of becoming a nurse but don’t want to go to university full-time this could be for you. The government has just announced a massive £172m investment into nursing, the money is to allow healthcare employers to take on up to 2,000 nursing degree apprentices every year over the next four years.

Getting There

Nursing apprenticeships offer an alternative to full-time university courses, allowing people to earn a salary while their tuition costs are paid.  At the end of the apprenticeship – which usually takes four years – apprentices are able to qualify as fully registered nurses.

You’ll usually need 4 or 5 GCSEs at grades 9 to 4 (A* to C) and A levels, or equivalent, for a degree apprenticeship. Pay: £24,907 to £37,890

2.       Air Traffic Controller

The lowdown

24 hours a day, they help to keep some of the busiest airspace in the world moving. The work is challenging and demanding, but it’s immensely rewarding too. Air traffic controllers give information and advice to airline pilots to help them take off and land safely and on time.

Getting There

You have to be over 18 and have at least five GCSEs or equivalent at Grade 4 or above (previously A-C) or Scottish Nationals 5 Grade A-C or equivalent, including English and maths. As well as having a good level of physical and mental fitness, you must satisfy the basic medical requirements set down by the Civil Aviation Authority.

The National Air Traffic Control Service (NATS) has developed a series of games to help gauge whether you’re right for this career. Pay: £17,000 to £50,000

3         Solicitor 

The lowdown
It’s not quite ‘Better Ask Saul’… in reality Solicitors advise clients about the law and act on their behalf in legal matters, and can specialise in a host of areas, including contract, criminal, commercial and family law, and much more. 

Getting there

You can now become a solicitor by training on the job since new solicitor apprenticeships (level 7) which were approved in 2015. This isn’t an easy route – you’ll need to pass a series of tough exams. You’ll need good A levels and it can take five to six years to complete. Pay £25,000 to £100,000

4         Visual Effects Artist

The lowdown

They help artists produce all the whizzy visual effects (VFX). They assist senior VFX artists and prepare the elements required for the final shots. Eventually they’ll be employed by post production companies working on commercials, television series and feature films.

Getting there

You could do a practical short course at London’s MetFilm School  (Ealing Studios) and try to get into the industry that way, or do an apprenticeship via Next Gen

Pay from £18,000 to £50,000 once qualified

5         Computer forensic analyst (cyber security)

What do they do?

Investigate and thwart cyber crime. They might work for the police or security services, or for computer security specialists and in house teams. They’ll follow and analyse electronic data, ultimately to help uncover cyber crime such as commercial espionage, theft, fraud or terrorism.

Getting there

Cyber security professionals are in high demand in both the public and private sector in the wake of high level breaches and perceived terrorism threats. And there’s a severe shortage of qualified professionals. Cyber security higher apprenticeships (level 4) are offered by major infrastructure and energy companies and – excitingly – the security services. Pay £20,000 to £60,000

6         Estate Agent

The Lowdown
An estate agent’s lot isn’t quite as chaotic as the comedy ‘Stath Lets Flats’, might lead you to believe, in reality, estate agents sell and rent out commercial and residential property, acting as negotiators between buyers and sellers.

Getting there
Some estate agents offer an intermediate apprenticeship as a junior estate agent, or you may be able to start as a trainee sales negotiator and learn on the job.

Pay: Estate agents often work on commission which means that you have a basic salary and also earn a percentage of the sale or rental price of any property you sell or rent. £15,000 to £40,000

7         Police Officer

The lowdown
This is another profession where the Government has pumped in large amounts of cash to help recruit new coppers. If you’ve been considering this as a career, now could be the right time to apply. Police officers keep law and order, investigate crime, and support crime prevention.

Getting there
There is no formal educational requirement, for direct application but you will have to be physically fit and pass written tests. Or, you could start by doing a police constable degree apprenticeship. You’ll usually need: 4 or 5 GCSEs at grades 9 to 4 (A* to C) and college qualifications like A levels for a degree apprenticeship.

You can get a taste of what it’s like to work with the police by volunteering as a special constable.

You could also get paid work as a police community support officer (PCSO) before applying for police officer training. Pay £20,000 to £60,000

8         Computer forensic analyst (cyber security)

What do they do?

Investigate and thwart cyber crime. They might work for the police or security services, or for computer security specialists and in house teams. They’ll follow and analyse electronic data, ultimately to help uncover cyber crime such as commercial espionage, theft, fraud or terrorism.

Getting there

Cyber security professionals are in high demand in both the public and private sector in the wake of high level breaches and perceived terrorism threats. And there’s a severe shortage of qualified professionals. Cyber security higher apprenticeships (level 4) are offered by major infrastructure and energy companies and – excitingly – the security services. Pay £20,000 to £60,000

9         Public Relations officer

The Lowdown
Public relations (PR) officers manage an organisation’s public image and reputation. You migh get involved in planning PR campaigns, monitoring and reacting to the public and media, writing and editing press releases, speeches, newsletters, leaflets, brochures and websites, creating content on social media much more.

Getting there
There is no set entry route to become a public relations officer but it may be useful to do a relevant subject at college, like a Foundation Certificate in Marketing.
You can work towards this role by doing a public relations assistant higher apprenticeship.

Entry requirements
You’ll usually need: 4 or 5 GCSEs at grades 9 to 4 (A* to C) and A levels, or equivalent, for a higher or degree apprenticeship. Pay £18,000 to £90,000

10     Youth worker

What do they do?

Work with young people and help them develop personally and socially. They might work with local services, youth offending teams or voluntary organisations and community groups. They might help organise sports and other activities, or be involved on counselling and mentoring, or liaising with authorities.

Getting there

Many enter youth work as a volunteer or paid worker, but you can now qualify via a youth work apprenticeship. Pay £23,250 to £37,500

11     Army officer 

The Lowdown
Undergo leadership training before choosing from a wide range of specialisms, including; platoon commander, helicopter pilot, intelligence, logistics… even work in military medicine and healthcare.

How do you get there?

You’ll typically need 5 GCSEs at grade 9 to 4 (A* to C) or above and 2 A levels. You’ll have to take aptitude and ability tests, pass a fitness test and interview before a more rigorous assessment to see if you’re capable mentally and physically.
Pay £27,273 to £42,009.

More than half of furloughed staff are back at work, says Resolution Foundation

Think tank Resolution Foundation economist Daniel Tomlinson says the UK Government is NOT paying nine million people’s wages. He says the number of workers currently furloughed is half this amount …

From today, employers will start contributing towards the wage costs of furloughed employees (writes RESULTION FOUNDATION’s DANIEL TOMLINSON).

This significant first step in the phasing-out of the Coronavirus Job Retention Scheme (JRS) carries real risks of increased redundancies – particularly for those in the hardest-hit sectors – and so attention should also focus on the important question of just how many people are furloughed today.

Despite significant easing of the lockdown and attention rightly focused on the large number of redundancies announced of late, it’s still common to hear the claim that nine million employees are being paid right now through the scheme. However, this is simply not true. Although it is true to say that in total nine million people have been furloughed for at least one three-week period since March, this cumulative figure does not reflect what’s happening right now. Rather, all the evidence suggests that the number of people furloughed today – as employer contributions towards furlough pay kick in – is likely to be at most half, and maybe even as low as one-third, of this nine million total.

For the millions of workers who have returned to active employment over the past three months, the JRS has served its purpose well. But it may be the case that more than one million employees in the hardest-hit hospitality and leisure industries are still furloughed.

It’s in this context that the impact of the across-the-board increases to employer contributions in August, September and October are a concern. Delaying future increases in JRS contributions for the hardest-hit sectors would help reduce the rise in unemployment forecast in the autumn.

There are not nine million people on the Coronavirus Job Retention Scheme today

The Coronavirus Job Retention Scheme (JRS) has been a very successful and well-implemented policy intervention. It has supported household incomes in the face of an unprecedented shock, and maintained the crucial attachment between employees and their employer.

However, for many firms and employees it will have only ever been used on a temporary basis at the height of the economic shutdown. Many furloughed employees have since returned to work (some on ‘flexible furlough’ for part of their working hours), and a smaller group will have been made redundant already, even before today’s introduction of employer contributions.

But you wouldn’t know this from listening to our politicians and broadcasters. The Prime Minister, claimed on 24 July 2020 that his Government was “supporting the livelihoods of 9 million people now through furlough”. Similarly, the BBC reported on 28 July 2020 that “9.5 million people are using the scheme, the same as a week ago”.

This is wrong. Although the cumulative take-up of the scheme since its launch is in excess of nine million, the actual number of people using the scheme right now – on the day that employers are now required to start contributing to the payroll costs of furloughed employees – is undoubtedly much lower.

Figure 1 shows the increase in cumulative JRS take-up over time, as published by HM Revenue and Customs. These cumulative figures are now entirely meaningless when it comes to understanding the path of the economic recovery or the numbers of people who have been furloughed for a prolonged period of time.

Figure 1: Nine million people have been on the JRS at some point since its launch

All the evidence suggests that the number of people currently furloughed is at most half the nine million total, and could even be one-third of this level

In the absence of official statistics on furlough numbers over time, we can turn to other estimates of furloughing and coronavirus labour market effects from various Office for National Statistics (ONS) surveys, in order to get a sense of when take-up peaked and just how fast it has fallen.

Across the three available data sets stretching back to the announcement of lockdown on 23 March 2020, the consistent finding is that the number of people furloughed or away from work is likely to have peaked in late April at somewhere between seven and eight million employees (Figure 2). The upper end of this range is based on the ONS’s Business Impacts of Coronavirus Survey (BICS), which reported that 31 per cent of the private-sector workforce was furloughed in late April.

Figure 2: The number of people now furloughed is much lower than in late April

Since late April, the number of people furloughed or away from work looks to have fallen considerably. This is unsurprising given restrictions on non-essential retail were lifted on 15 June, and on many parts of hospitality and leisure on 4 July (in England).

The opening up of these parts of the economy, and the general increase in economic activity since the depths of lockdown, will have led to millions of employees returning to work.

For example, the number of people temporarily away from work above and beyond the usual level of temporary work absences (the red line in Figure 2)  fell by 40 per cent between late April and late May. This will have been driven primarily by people coming off furlough, but also by reductions in the number of people away from work for other reasons such as shielding, self-isolating or for childcare.

Some of this decline will also be driven by moves off the JRS and into unemployment, although this is likely to be a relatively small part of the story to date as in May, June and July employers had not yet been asked to contribute anything towards the costs of furloughing their employees.

More up-to-date estimates come from the BICS for early July, which suggests that 16 per cent of the private-sector workforce was furloughed at this time. We estimate this equates to around five million people still on furlough at the start of the month.

At the other end of the range, the Opinions and Lifestyle Survey (OLS) shows that the proportion of those who report that they are employed but furloughed fell from 13 per cent of all workers in the period 18-21 June, to 8 per cent of all workers in the period 8-12 July.

This figure, which equates to three million employees, is at the lower end of the range we’d expect, and will have been affected by the introduction of flexible furloughing from 1 July. Many employees who returned to work part-time in July will not have been counted as furloughed in these OLS estimates, but may well have still have the majority of their pay provided through the JRS (and will appear in some of the other series shown in Figure 2).

It would be unwise to lean too heavily on this or any other estimate from one particular survey in drawing conclusions as to the number of people furloughed today. The use of flexible furlough in July could mean that the pace of decline in take-up slowed last month as employees moved from full to flexible furlough, rather than off the scheme altogether. To date there is little evidence on the impact of flexible furlough on business behaviour, but it’s likely that usage of this component of the scheme will be high.

Overall, it is reasonable to draw the conclusion that the number of people furloughed right now, as employers begin making contributions to furloughed employees’ wage costs, is certainly below 4.5 million (half of the commonly cited nine million total) – and may be as low as one-third of this level.

Employer contributions will disproportionately affect workers in hospitality and leisure, so a sectorally differentiated wind-down of the scheme is desirable

Although the number of people furloughed right now is lower than many claim, it is still a large proportion of the workforce – particularly in some sectors. For this reason, the impact of the introduction of employer contributions towards furloughed employees’ wage costs from 1 August should not be taken lightly.

This big change to the scheme will mean that employers will now start paying employer National Insurance contributions and minimum auto-enrolment pension costs for furloughed employees, at an average of £70 a month (equivalent to 5 per cent of the average employee’s wages pre-coronavirus).

This shift will be followed by increases in contributions in September and October and then the ending of the scheme in November, changes which will have large effects on employer costs in sectors where furloughing rates are higher, such as hospitality and retail. We estimate that in these two sectors as many as one million employees (38 per cent) may still have been furloughed in late July (Figure 3).

Figure 3: Four-in-ten hospitality and leisure workers could still be furloughed

The fact that furloughing rates, and therefore the cost of employer contributions, are concentrated in particularly hard-hit sectors strengthens the case for treating these parts of the economy differently from the rest in the months ahead. Employees in these sectors are now at heightened risk of entering unemployment this autumn as employer contributions are introduced today and then increased throughout September and October.

We have previously called for the phasing in of employer contributions to take place on a slower timetable in the hardest-hit sectors for just this reason. The Government could still take this approach with the planned September and October employer contribution increases (to an estimated 15 and 25 per cent of pre-coronavirus wage costs), in order to limit redundancies in sectors like hospitality and leisure.

Further, the imposition of local lockdowns and the very real risk of a broader second wave means that Government must also be clear about what policy will do in these circumstances. In time, flipping the JRS so it subsidises work being done in these hardest-hit sectors, rather than provides payments when work isn’t done, would be more effective way of maximising the amount of work carried out and would be a more sustainable way of providing support to parts of the economy heavily affected by ongoing social distancing.

To date, the JRS has been a clear policy success. However, the challenges of phasing it out, calibrating it to the path of the virus and the return of economic activity mean that the hard work of designing and implementing policy that protects jobs and incomes in this crisis is far from over.

Next Step for employment support in Edinburgh

Since lockdown began in March, the pressures on the job market has been no more acutely felt than in Edinburgh which has been one of the hardest hit cities in Western Europe. 

As we emerge from lockdown, some have returned to work, but there is still talk of recession being announced soon. However, there is already a support system in place for residents experiencing redundancy and unemployment because of Covid 19.   

At the start of lockdown, The City of Edinburgh Council asked employment service Next Step Edinburgh to respond and they are currently supporting hundreds of people who have lost work.

Next Step Edinburgh has been providing employment support for people in and out of work since April 2019, but since March they have adapted their service as registrations from people affected by COVID 19 job losses has increased.  

Will was supported by Next Step Edinburgh to gain employment as a walking supervisor for a building project. He explains what kind of support he received from Next Step before and during lockdown:  

“I was referred to Community Renewal’s Next Step Edinburgh service by my job centre adviser. I wasn’t sure what to expect as I had a rather negative experience with a provider prior to this.

“I worked with them to focus my CV and from the first moment was treated with respect by people who genuinely wanted to help. They also assisted me with job interview preparation and a screening job interview which meant I was very prepared for the real interview and subsequently was offered the logistics supervisor role I am currently doing. 

“Unfortunately, the job was stopped after little more than a week due to Covid 19 and was stalled for a few months. Every week during that period I would receive a call from my adviser Ross to check all was ok and if there was anything he could assist with. This was very important to me.

“Thankfully I am now back at work, but I would like to personally thank them for their work and the genuine respect they treated me with throughout.” 

Capital City Partnership has been working with key organisations to coordinate a response to the crisis. Their Deputy Chief Executive, Kate Kelman adds: “We know that people and businesses are finding it really hard just now and the impact on jobs and the economy is likely to be far-reaching.

“Along with our Joined up for Jobs network of provision, Next Steps has literally ‘stepped up’ to support individuals who are facing redundancy and job insecurity. Their high-quality help and guidance will ensure that Edinburgh residents can progress quickly into fair, sustainable work.” 

Lesley Morrison who is a Service Manager for Community Renewal – the charity who deliver the Next Step Edinburgh service – comments on the how they are supporting people right now: “We don’t believe in a one size fits all approach – everyone is different, and we listen to what each client’s needs and together we come up with a plan.

“Some people just need a job right away and we can link them with employers we have relationships with. For everyone else, we work with them, so they are ready for when the job market recovers; whether that be refreshing a stale CV, helping with applications or directing them to vocational training if they are considering a career change.

“Whatever is needed, we are here – and if we can’t support all their needs, we will link with specialist organisations who can help them whilst we continue to support their employment needs.” 

The City of Edinburgh Council continues to fund Next Step Edinburgh to support people to secure and progress into employment.

Additional funding was made available through City Region Deal has also allowed the development of a jobs website –  www.c19jobs.org – which directly assists those who have faced redundancy or job insecurity due to the current crisis. 

Councillor Cammy Day, Depute Leader of the City of Edinburgh Council, said:  “As the economic impact of the pandemic on Edinburgh unfolds, we’re doing all that we can to help people facing financial hardship.

“We know that this crisis is far from over and we stand ready to help our most at-risk residents. The Next Step Edinburgh employment programme is in place to support anybody facing redundancy or job insecurity in Edinburgh. I’m pleased we’re able to fund this service in order to support people back into careers as quickly as possible. 

“The project is part of a package of measures we’re working on right now to prevent long-term unemployment in the coming months and years, including an expanded Edinburgh Guarantee.

“Hailed by the Scottish Government as a really good example of the type of work cities can do to successfully tackle unemployment, our Edinburgh Guarantee has been supporting disadvantaged young people for years. 

“We’re looking to expand this offer even more in light of Covid-19. We want to use it to help people of all ages who might face additional barriers to employment and we’re calling on employers to sign up and support us.” 

Lesley warns that the journey ahead won’t be straightforward, but stresses that nobody has to face it alone – there is support available: “Next Step Edinburgh’s advisers will do everything they can to support you. 

“We are working with employers recruiting right now but we understand those jobs may not be right for some. For those people we will collaborate so they will be front of the queue when the job market recovers.” 

Anyone looking for support can find the contact details on Next Step Edinburgh’s website – www.nexstepedinburgh.org  

£100 million boost for employment support

Focussing on support for youth jobs

People looking for work or those at risk of redundancy will benefit from additional assistance to move into work or retrain.

The package of support, outlined by Economy Secretary Fiona Hyslop yesterday, is backed by £100 million for 2020/21, with at least £50 million of that funding set aside to help young people get into work.

The measures include a job guarantee for young people, a new national retraining scheme, and more funding to provide immediate assistance and advice if people are made redundant.

In addition, Fair Start Scotland, our employment support service, has been extended by a further two years to March 2023.

Ms Hyslop said: “We are potentially facing unemployment on a scale not seen for decades as a result of coronavirus (COVID-19). Today’s announcements show that we are ready to rise to this challenge with investment to help ensure that people who have lost jobs, those at risk of unemployment and young people entering the labour market can benefit from more and better job opportunities.

“This crisis is having a significant impact on our young people and we need to act quickly to protect their future. I have asked Sandy Begbie, who led the Developing the Young Workforce Group that played a pivotal role in the delivery of the Edinburgh Guarantee to young people, to develop an implementation plan for a job guarantee for young people, as recommended by the Advisory Group on Economic Recovery, and we will set out more detail on that plan in early August.  

“The extension to Fair Start Scotland will also provide stability and continuity to the most vulnerable and those furthest from the labour market, including people with disabilities, health conditions and those who are long-term unemployed, to help them progress into work.”

The £100 million is in addition to the £33 million already committed for employability support for 2020/21.

Bleak outlook as a third of firms set to cut jobs over coming months

Results from the British Chamber of Commerce’s Quarterly Recruitment Outlook, in partnership with Totaljobs, reveal the impact Coronavirus has had on the jobs market, with the two organisations calling for further action from government to protect businesses and jobs.

  • 29% of businesses expect to decrease the size of their workforce in the next three months
  • 28% decreased size of workforce in Q2 but 66% kept their workforce constant, reinforcing the success of the Job Retention Scheme
  • The two organisations call for a cut in employer National Insurance Contributions to protect businesses and jobs.

The leading business organisation’s landmark survey, which serves as a barometer of the UK labour market, received 7,400 responses and is the largest of its kind in the UK.

Fieldwork was done prior to the Chancellor’s Summer Statement which announced the Job Retention Bonus, Kickstart Scheme and an Apprenticeship Recovery programme, among other things.

Redundancies expected

29% of businesses expect to decrease the size of their workforce in the next three months before the government’s Job Retention Scheme ends, the highest on record.59% will keep headcount the same and just 12% will look to increase the size of their workforce.

The news comes as businesses across the UK economy announced significant redundancies. The survey found that over the next three months:

  • 18% of micro firms (with fewer than 10 employees) expect their workforce to decrease.
  • 41% of small and medium firms (with 10 to 249 employees) expect their workforce to decrease.
  • 41% of large firms (with over 250 employees) expect their workforce to decrease.

The survey reinforced data from the BCC’s Quarterly Economic Survey of the challenging environment business communities across the UK are facing, with record falls in key indicators of business activity, including domestic and export sales, cashflow and investment.

Recruitment

The percentage of businesses attempting to recruit in the previous quarter fell to 25%, the lowest level on record. Of the firms that attempted to recruit, 65% faced recruitment difficulties, particularly for skilled manual/technical or managerial roles.

Success of the Job Retention Scheme

While 28% of respondents decreased their workforce in Q2, two in three firms kept staffing levels constant. This reflects data on the success of the Job Retention Scheme, with the BCC’s Business Impacts Tracker indicating that around 70%of businesses had furloughed a portion of their staff.

Beginnings of recovery?

As lockdown lifts, Totaljobs have seen a 30% month-on-month increase in the number of jobs being advertised on their website for June, with the largest volume posted in IT (20k), logistics (12k) and social care (9k).

There were also month on month increases in sectors benefiting from lockdown easing like retail (+51%), travel (+47%) and hospitality (+23%). Skilled trades also started to see growth compared with previous weeks, with jobs advertised increasing by57%.

Unsurprisingly, applications per vacancy were up across all sectors, reflecting continued rises in candidate activity on the Totaljobs site.

Further action needed

The two organisations have called on the government for further action to limit the damage to the UK labour market, including reducing the overall cost of employment, through a temporary cut in employer National Insurance Contributions and support to upskill and reskill employees as businesses adapt to change.

BCC Co-Executive Director Hannah Essex said: “Our research demonstrates the Chancellor’s focus on protecting, supporting and creating jobs is exactly what’s needed to drive the UK’s economic recovery in the coming months.

“Many businesses are suffering from an historic cash crunch and reduced demand, meaning firms will still face tough decisions despite welcome interventions made in the Summer Statement.

“The government should consider additional support for employers before the Autumn Budget to reduce the overall cost of employment and prevent substantial redundancies.Measures could include a temporary cut in employer National Insurance Contributions and support to upskill and reskill employees as businesses adapt to change.”

Totaljobs CEO Jon Wilson said: “The latest figures from the Quarterly Recruitment Outlook make stark reading, especially when compared to what we had grown accustomed to in previous years. It is clear that business confidence is low, with many being forced to make difficult decisions when it comes to their workforce.

“However, the Chancellor’s summer statement outlined a number of measures that will not only support jobs but help create new roles in the economy and give confidence to businesses trying to plan for the future. The interim cuts in stamp duty and VAT should give the hard-hit housing and hospitality sectors a much-needed boost.

“It’s clear that moving forward, adaptability remains paramount for businesses and people, with upskilling, reskilling and utilising transferable skills all key factors during this recovery period. 

“To protect jobs and further ease the burden facing businesses, we join the British Chambers of Commerce in their call for a cut in employer National Insurance. We also urge the Chancellor to continue to consider the needs of the sectors and demographics most impacted by Covid-19, to protect people’s livelihoods and help the jobs market and wider economy pick up.”

Commenting on the latest employment figures published today (Thursday), which show around 650,000 fewer paid employees since before the pandemic, TUC General Secretary Frances O’Grady said:  “There’s a national disaster unfolding, with vacancies at an all-time low and more jobs lost every day, but ministers are watching from the side-lines, instead of saving jobs with targeted support for the hardest-hit sectors like retail, manufacturing and aviation. 

“The more people we have in work, the faster we will work our way out of recession. If the government doesn’t go all out to protect and create jobs, the economic crisis will be longer and harder. 

“We can create jobs by fast-tracking infrastructure projects. This would speed up the delivery of faster broadband, more childcare, green technology, modern transport and housing. And it would create over a million jobs across the UK.” 

You can view the full QRO report at the link below:

BCC QRO Q2 2020

TUC: Chancellor has a chance to prevent ‘devastation of mass employment’

As the Chancellor stands up to make his ‘summer statement’ today, families across the country will be facing up to the possibility of unemployment (writes the TUC’s KATE BELL): 

Yesterday, Pret-a-Manger announced it would be closing 30 shops, with the loss of 1,000 jobs. Last week, to take just one example, Airbus announced the loss of up to 1,700 jobs in the UK. British Airways are ploughing ahead with cuts which could lead to 12,000 job cuts. And the list is getting longer by the day. 

The Chancellor has a chance to prevent the devastation of mass unemployment leading to the situation this country saw in the 1980s – young people left on the scrap heap, lives ruined, and communities decimated. But he needs to act fast and decisively.

Here’s the TUC’s plan for decent jobs:

1. Introduce a real jobs guarantee – offering paid jobs for young people who face unemployment 

We’ve heard that the Chancellor may invest in apprenticeships, or traineeships – unpaid work placements with some training attached. It’s not clear yet whether these will be voluntary, or how the Chancellor expects people to live while they’re undertaking these. The TUC has always opposed mandatory unpaid work placements. And unpaid work experience is no substitute for a real jobs guarantee.

 We want the government to invest in supporting real jobs, paid at least the Real Living Wage, for young people facing the prospect of long-term unemployment. Government funding should support additional jobs in the public and private sector that support regional growth strategies, and provide real benefit, including helping to decarbonise the economy.  

That jobs guarantee must go alongside a rapid redundancy response service and investment in jobcentres. And we desperately need an increase in social security payments to stop those who lose their jobs spiralling into debt.  

2. Invest across the economy to create jobs 

We know the country needs an infrastructure upgrade to help drive productivity, and urgent action to tackle the climate crisis. And after a decade of austerity, our public services are desperately overstretched.

Fixing these problems now can help create the jobs we need. Research for the TUC shows that an £85bn investment in green infrastructure could help create 1.24 million jobs in the next two years, including 500,000 jobs through building and retrofitting social housing, and almost 60,000 jobs in electrifying transport.

And we should support our public services by investing in jobs. There are over 100,000 vacancies in social care, and 100,000 more in the NHS – even before we deliver a better system. Local government saw 100,000 redundancies in the past decade, jobs that are needed now to deliver vital services and help tackle the pandemic.

3. Work with unions and business on new rescue plans for hard hit sectors 

We’ve seen how the pandemic, and the social distancing measures it requires, has hit some types of business harder than others. Aviation and hospitality have been particularly badly affected. Government needs to come together with unions and businesses to design rescue packages for these sectors – including setting out how those plans can be used to deliver better and greener jobs. 

The Job Retention Scheme has done valuable work throughout the crisis in protecting people’s jobs, and is now supporting many people to work part-time. Government should extend it beyond October for businesses that can show they have a viable future but need more time to get back on their feet.

4. Prioritise progress towards equality 

We know unemployment is bad for everyone. But those who already face discrimination in the labour market often see their prospects held back even further.  BME groups faced higher unemployment in the 2008-09 recession, and still have high unemployment rates.

Research shows that during upturns disabled people are the last to gain employment, and during downturns they are first to be made unemployed. With the childcare sector on the brink of collapse, women’s employment prospects face being put back a generation.

The Chancellor needs to prioritise progress towards equality when he sets out his plans. That means tackling the insecure work that leaves BME workers disproportionately having their hours cut or being let go. It means monitoring the impact of employment programmes on different groups.

And it means the Chancellor needs to protect those who can’t work due to the fact they are shielding or have caring responsibilities from being forced out of work by extending the job retention scheme.

Mass unemployment and a new wave of inequality aren’t inevitable. We can build back better. But the Chancellor needs to be bold and act fast. 

Finance Ministers from the devolved administrations are urging the UK Government to ease the financial restrictions imposed on devolved governments so they can better respond to the coronavirus (COVID-19) crisis.

Ahead of the Chancellor’s Summer Statement, Kate Forbes, Rebecca Evans and Conor Murphy are calling for assurances that will give them the freedom to switch capital funding to day-to-day revenue and put an end to the arbitrary limits on borrowing. They are also looking for more clarity on details around the forthcoming Spending Review.

Kate Forbes, Scotland’s Cabinet Secretary for Finance (above), said: “The powers we are seeking will enable the Scottish Government to respond to COVID-19 more effectively and reboot our economy. They are relatively limited powers, but would ease some of the immense pressures on our budget and give us more tools to kick-start our recovery.

“At the moment, any extra money spent bolstering services and supporting the economic recovery must be taken from other areas. That creates risks for our essential public services, jobs and businesses. I am therefore calling on the Chancellor to ease these rigid fiscal rules and give us the flexibility we need to properly address the monumental challenges our economy is facing.

“I also want to see greater ambition in the level of investment in our economy. Last week the Scottish Government set out a proposal for an £80 billion UK-wide stimulus package. What is needed at this time of crisis is bold and practical policies that will boost consumption, promote investment and protect jobs.”

Northern Ireland Finance Minister Conor Murphy said: “It is crucial that the devolved administrations are equipped to respond swiftly and effectively to the challenges arising from COVID-19.

“More financial flexibility can help us deal with these challenges and use our budgets to support public services, protect the vulnerable, and deliver an economic recovery.”

Welsh Finance Minister Rebecca Evans said: “Our response to the COVID-19 crisis has been hampered by UK imposed rules that limit our ability to get more resources to the frontline.

“There is no clear rationale for these rules, which undermine good budget management in Wales.

“The Welsh Local Government Association, Wales TUC, FSB Cymru and Institute for Fiscal Studies and, more recently, the Senedd’s Finance Committee, have all made the same calls for change.

“The crisis has made the issue urgent. It’s time for the UK Government to act and provide the flexibility we need to respond and invest in Wales’ recovery.”

Young workers face highest risk of unemployment

  • UK is on the brink of a surge in youth unemployment, warns TUC
  • Government must introduce a job guarantee scheme to prevent the misery of long-term unemployment

New analysis published today by the TUC shows that young workers (aged 25 and under) face the highest risk of unemployment due to the coronavirus crisis.

The analysis compares unemployment risk related to the coronavirus crisis across industrial sectors. And it looks at the age profile of workers in sectors with highest risk.

Sectors at highest risk

Workers in all sectors of the economy face unemployment risks due to the coronavirus crisis and the recession that is expected to follow.

However, two sectors are at much higher risk of losing jobs compared to others: ‘accommodation and food’ and ‘arts, entertainment and recreation’.

Our analysis uses three measures to assess risk: (1) the rate of furloughed workers, (2) the proportion of businesses that have paused or cancelled trading, and (3) the proportion of businesses with turnover falling more than 50%.

These two sectors not only rate the highest for all three measures, they are also in a league of their own, with rates far exceeding the construction sector in third place.

Sector Workforce furloughed Businesses pausing trading Businesses with turnover falling more than 50%
Accommodation and food 83% 74% 62%
Arts, entertainment and recreation 73% 75% 63%
Construction industries 41% 19% 40%
Average for all industries 28% 18% 26%

NB – this table shows selected data from the analysis. For a full table covering all sectors, see the research note.

Young workers

The analysis suggests that, without urgent action, the UK may be on the brink of a surge in youth unemployment.

  • Of 4,352,000 UK workers aged 25 and under, 890,000 work in either accommodation and food, or arts, entertainment and recreation.
  • It means that 20% of workers aged 25 and under work in these two sectors, compared to 6% for workers older than 25.
  • Workers aged 25 and under are therefore three times more likely to work in one of the two sectors where jobs are at greatest risk.

Women workers aged 2 5 and under face the greatest risk of all. They are six times more likely than male workers over 25 to work in the highest risk sector, accommodation and food.

In addition to lay-offs, recessions make it harder for young people seeking to enter the labour market for the first time, as employers hire less. This part explains why youth unemployment tends to be much higher than for other workers following a recession.

UK job vacancies have already fallen 25% compared to this time last year. And the sector with the biggest fall is accommodation and food (42%).

Job guarantee scheme

Research shows that prolonged unemployment when young has negative impacts on later working life. This includes a greater likelihood of further periods of unemployment and work with lower pay.

The TUC is calling for a job guarantee scheme to stop those without work becoming long-term unemployed, with early access to the scheme for young workers.

It would resemble the future jobs fund, which was part of the national recovery plan following the recession in 2008 caused by the private banking crisis. A government evaluation found that, two years after starting the programme, participants were 27% more likely to be in unsubsidised work.

Key features of the TUC’s proposed jobs guarantee scheme:

  • Supports additional jobs that would not otherwise be created by employers
  • Enables work that benefits the UK, such as helping to decarbonise the economy
  • Offers secure contracts of at least six months
  • Pays at least the real living wage
  • Gives training opportunities to help people move into longer-term work
  • Provides guaranteed access to trade union representation

Alongside the job guarantee scheme, the TUC says that government must work with businesses and unions to protect as many jobs as possible. This should include extending the job retention scheme for employers who cannot easily adapt to social distancing.

And ministers should form a national recovery council alongside unions and employers, to design and deliver a recovery plan that protects and creates decent jobs.

TUC General Secretary Frances O’Grady said: “We know it’s a tough road ahead. But the more people there are in work, the faster we can work our way out of recession.

“Our national recovery plan must be centred on jobs – both protecting those we have and creating more.  We need more good jobs in social care, in the green tech that our future depends on, in UK start-ups and in a revitalised manufacturing sector.

“Some industries may need help for longer through the job retention scheme so they can retain staff while they adapt to new safety standards.

“And for those who lose their jobs, the government must set up a job guarantee scheme. Young people in particular can’t be left to the misery of long-term unemployment. And it’s the best value option for the treasury.

“Making sure everyone has a decent job on a fair wage is how to recover faster and build back better.”

Last orders? CAMRA responds to extended lockdown

Responding to the Scottish Government’s strategy to exit lockdown measures, which state that gathering in pubs is likely to be banned or restricted ‘for some time to come’, CAMRA Director for Scotland Sarah Crawford said: “While the Government must follow scientific advice and do what is right to keep people safe, this will undoubtedly be a huge blow for pubs and breweries. 

“The pub and brewing sector was among the first to be hit by the lockdown and it is set to be among the last to get back to normality. One thing many people are looking forward to when all this is over is going down the pub to meet friends and family for a drink.

If the Scottish and UK Governments do not make sure that our local pubs and breweries receive all the financial support that they need to weather this crisis, we risk not having them around at all when all this is over.”

Morrisons thanks staff with threefold increase in bonus for next 12 months

  • Full time colleagues will earn a bonus of £1,050 compared to around £350 average last year
  • The special bonus is the largest for frontline supermarket staff announced in recent weeks

Morrisons is recognising the huge effort by its colleagues who are helping to feed the nation during the coronavirus outbreak by increasing this year’s annual bonus payout threefold from last year.

Morrisons annual colleague bonus will become a ‘thank you’ bonus with the increase lasting for the next 12 months.

Because it will be a percentage of the entire year’s pay, frontline colleagues at Morrisons will see the largest special bonus of those announced over the last few weeks in the supermarket sector.

Morrisons colleagues have worked tirelessly to help meet demand and to thank them they will see these changes to the current bonus scheme:

  • All frontline colleagues will receive a 6% bonus on their earnings for the next 12 months rather than just the next 8-12 weeks
  • The changes represent a bonus payment of £1,050 for a full-time frontline colleague compared to the £351 that would have been paid last year
  • The bonus will be guaranteed in recognition of the effort made by very hard working colleagues
  • It will be paid quarterly so colleagues don’t have to wait until next year to be paid
  • The bonus will continue to be paid as a percentage of actual earnings as per previous years
  • Colleagues who are off sick or are self-isolating will remain eligible
  • Both permanent and temporary colleagues will be eligible in recognition of the thousands of new colleagues who have joined Morrisons in recent weeks.

Clare Grainger, Group People Director said: “Our highly valued colleagues have stood tall amidst the coronavirus pandemic, playing their full part in feeding the nation.

“We want to thank every single one of them for their continued hard work during these unprecedented times by paying a much higher guaranteed bonus for the whole year in recognition of their effort.”

Morrisons frontline salaried managers are also guaranteed to receive a bonus that will be twice their maximum yearly amount in a normal year, again guaranteed and paid quarterly.

The bonus overhaul is the latest change that Morrisons has put in place for its highly valued colleagues.

Previous measures include paying extremely vulnerable and high risk colleagues 12 weeks paid leave to self isolate as well as paying 12 weeks paid leave to colleagues who live with someone who is high risk and extremely vulnerable.

In store, perspex screens have been installed to protect colleagues and customers while paying for groceries at the checkouts and social distancing measures have been introduced.

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