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How the Job Market Affects Business Support Provisions

Posted on: 28/08/2020

During these uncertain times, it’s important for businesses to stay up to date with the current job market. This information can help organisations and Government bodies understand what business sectors need more support and in what capacity they need it in. Providing the right support at the right time can aid these businesses in reaching success and, in turn, can help support the economy to grow and flourish.

Recently, the Office for National Statistics released a report about the job market and how the current circumstances have affected it. The report states that employment is weakening, but the level of unemployment is largely stable during this period of uncertainty. However, it is important to note that the level of employment does still include those who are furloughed. The stable unemployment rate is due to an increase in economic inactivity.

Analysis suggests that the employment rate slumps in May, June and July were mainly due to fewer people being moved into payrolled employment. These employment slumps are concerning as without a steady number of skilled people entering the job market, employers will face a skills shortage that can lead to a negative impact on the overall economy.

Towards the end of July, paid employment in Britain had fallen by almost 650,000 employees since March, meaning that businesses also had to deal with an influx of applications from job seekers. However, with the UK job market in a period of “deep freeze”, showing even less vacancies than in the Christmas week, these job seekers are left in an even more competitive, highly selective and smaller market than before.

However, as lockdown restrictions in the UK ease, the job market in certain areas of England, for example in London, is showing signs of improvement. The number of professional vacancies in London paying over £40,000 per annum saw a steady increase in July. The hope is that this improvement will gradually spread to other regions of the country, allowing the market to recover back to pre-lockdown levels.

With online sales and ecommerce becoming more vital, particularly during lockdown, many businesses are refocusing and are increasingly looking to hire talent with digital skills. It’s important that businesses are able to acquire the talent and skills they need in order to continue strengthening and growing. To help them do this, the Government has released new support measures such as the Kickstart Scheme, which pays employers a specific amount for hiring apprentices of a certain age at a certain salary. By supporting these talented individuals, employers are able to recruit the skills they need to flourish and get through these uncertain times. Ultimately, these support provisions help the economy by providing businesses with what they need and open opportunities to help employees to continue working.

At Exemplas we’re experts in providing SMEs with the tools and advice they need in order to excel and grow as a business. We ensure we stay up to date with the latest news and techniques to help SMEs develop and upskill. Advisory support is at the heart of what we do, and our knowledge becomes an SME’s advantage within the industry. We deliver a number of key public sector contracts, including Enterprise Europe Network in the East of England and the Hertfordshire Growth Hub. These projects are designed to aid businesses with developing strategies for growth, boost productivity and innovation.

Click here to find out more about the work we do to support SMEs

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