In the spotlight: The urgency to protect jobs as new restrictions kick in

In the past few weeks, the number of recorded COVID-19 cases in the UK has risen dramatically, and with that have come both new restrictions and support measures from the Government. But are these adequate to curb job losses and support job creation?

More than 28 million people are currently living under tighter measures, and the Government has warned that restrictions could remain in place for the next six months.  

It is hardly surprising that business confidence remains at a historic low.

New measures to support jobs and livelihoods

In order to soften the impact of these new restrictions and local lockdowns, the Chancellor has announced new measures to support businesses and jobs.

The new Job Support Scheme (JSS) will allow employers to reduce a worker’s hours while the Government helps to top up their wages.

• Following calls for more targeted action, the JSS has since been extended – businesses which are legally required to close due to local or national restrictions will receive grants to pay up to two-thirds of the wages of staff who cannot work, up to £2,100 per month.
• In addition, recognising that businesses not forced to shut continue to face profound economic uncertainty, particularly in hospitality, it was announced that employer contributions for the hours not worked will reduce from 33% as originally planned to 5%. However, employers will be asked to cover National Insurance contributions and pension contributions.
• The scheme, which will begin on 1 November, will be available for six months with a ‘review point’ in January.

The Government also announced that it is increasing the cash grants that are currently available to businesses in England, which are forced to shut due to local or national restrictions – firms will be able to claim up to £3,000 per month, rather than up to £1,500 per three weeks. For those businesses in hospitality, leisure and accommodation sectors impacted by Tier 2 restrictions, a direct grant up to £2,100 for every month that restrictions apply will be available.

The package of cashflow relief for businesses also includes deferrals to loan repayments and VAT relief, while an extension of support for the self-employed was also announced.

But more is needed

The JSS aims to act as a safety net for businesses and workers but, is this enough to curb job losses?

The new realities highlight even more the need to ensure that the right package of economic support is in place to help the regions and sectors hit by local lockdowns. Crucially, this includes supporting temporary workers and the supply chains that support them.

While it is positive that the Government seeks to provide support for people who are in viable work, we also need to see some focus on the creation of new jobs. Businesses create new positions all the time, as our data show. However, many will need more support if they are to continue to do so. Reducing employer’s National Insurance contributions would be a big step by bringing down the cost of employment for businesses.

It is also encouraging to see the progress businesses have made on effective home working, with hiring and onboarding online becoming much more common. But, with only half of people having the option to work from home, it is imperative that workplaces are made Covid-secure for all staff, no matter what contract they are on. More support is needed towards those occupations and sectors where jobs have to be carried out in a specific location - it is important to keep those working in higher risk environments such as healthcare, construction and manufacturing safe and ensure steps are taken to prevent transmission of the virus.

Recruiters are experts on where opportunities lie, facilitating career transitions and supporting people to get jobs. We know temporary work is critical in any recovery - businesses turn to temps to help them ramp up and meet demand while the future looks uncertain. At the same time, it enables people to find work quickly. Past recessions show that temporary work bounces back more quickly – it is one of the jobs market’s biggest strengths. Recruiters have a huge part to play in mobilising the temporary workforce and getting the economy moving again.

The priorities for the government are clear:  ensure economic support measures are appropriate and inclusive, and the Test and Trace system runs effectively – this is the only way to keep the economy going while fighting the virus.

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