Financial Report 21/11/20
11/11/20 – Redundancies and Unemployment rise in the UK
UK unemployment hit 4.8% in the three months leading up to September as reduced hiring and numerous redundancies took their effect. Redundancies climbed to a record high of 314,000 between July and September which is an increase of 195,000 from last year. The high number of unemployment may be attributed to the lapse in job retention support, despite the furlough scheme now being extended until March 2021.
The spike in redundancies is now comparable to that of the spike during the financial crisis of 2008, where there were 311,500 redundancies but this time, the unemployment rates are expected to rise further. The worst affected demographics of the current employment crisis in the UK are young people, men and a dramatic drop in EU nationals working in the UK has also been observed.
Though the job markets are tough at the minute and this news may seem gloomy, we would like to take the time to encourage you to carry on searching and applying for jobs. Keep looking for opportunities for growth and make the most of the time you have, whether that’s learning a new skill or even setting up a business from home in your passion, there are many ways you can make this situation work for you!
18/11/2020 – Global debt is soaring
The effects of COVID-19 are truly global, resulting in an unprecedented debt accumulation across the globe. Global indebtedness is on track to increase to over $277 trillion in 2020 which would bring the total to 365% of the global gross domestic product, that is the accumulated value of all goods and services in the world, an increase of 45% compared to the end of 2019.
18/11/2020 – UK Government criticised over Covid Contracts
The British government has been criticised by the public watchdog for spending more than £17 billion on Covid contracts to private companies, with fears that they may not have been transparent and potential conflicts of interest arising. Where companies with poor due diligence records and government connections have been granted crucial contracts to combat the virus, the National Audit Office has said the Cabinet Office and the Department of Health and Social Care have failed to explain the seemingly poor choices.
21/11/2020 – Public sector pay to be frozen
Rishi Sunak is facing backlash over plans to announce a pay freeze for public sector workers despite the tireless effort that public sector workers have put in over the coronavirus pandemic. It is, as of yet, unclear as to whether the pay freeze will apply to the entire public sector and for how long the pay freezes will last. This pay freeze hits extra hard as the government also announced an additional £16.5 billion to fund military expenditure including funding for laser weapons to defend the UK military. When paired with the criticism over Covid PPE contracts the pay freeze for the public sector is being reported as a stab in the back to the front line workers and staff that have continued to work during the pandemic. However, it must be noted that compared to the private sector, where furlough, unemployment and redundancies are at all time highs, a one year pay freeze may not be as disparaging as it initially appears. Especially when public sector pay is comparatively 9% higher on average than private sector pay.
Round up based on news articles from the Financial Times and the BBC.
This round-up is not linked to and does not reflect the views of any companies with which Laura Dench or Elliott MacCallum are associated.
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