Post-furlough job time-bomb set to explode
BUSINESSES and workers are facing a “time-bomb” as millions fear they will never work again when Government furlough and other support schemes wind down this autumn.
More than half of those who have been made redundant or put on furlough during the Covid-19 pandemic believe they do not stand a chance of finding new work amid the intense competition.
The country’s gig workers, freelancers and others in lowpaid, unsecure work worry they lack the skills to find a new job.
Nearly four in 10 say their financial situation is the worst it has ever been – double the rate for those in stable work.
The exclusive figures from innovation foundation Nesta are a stark warning of what lies in store when furlough ends on October 31. The mortgage payment holiday scheme ends on the same day, as does the ban on home repossessions. Ravi Gurumurthy, chief executive of Nesta, said the challenges facing those in less secure work are about to bite hard.
“It is crucial that we find new, innovative ways to support people to access jobs and financial support.”
Tomorrow, Nesta launches a challenge prize, to encourage new methods of supporting those hit hardest by coronavirus.
Robert Alster, chief investment officer at Close Brothers Asset Management, said furlough support is ending at the same time as our EU divorce was supposed to be finalised. “Should the virus generate the threatened second wave, it could be the perfect economic storm.”
The over-50s are struggling as official figures show the number of older workers in full or parttime work has fallen for the first time since 1993. Aviva’s workplace savings manager Laura Stewart-smith said employers must redouble efforts to support older workers. “This loss of participation represents a huge drain in talent, skill and expertise.”
New “Rule of Six” Covid restrictions will begin tomorrow and Blick Rothenberg partner Richard Churchill said the events and hospitality sector will suffer.
“Just when businesses thought they would generate revenues in September, the rug has been pulled from beneath them.”
Churchill called for more support after the coronavirus business interruption loan scheme, bounce-back loan scheme and job retention scheme end.
Things could intensify next year as Peter Bracey, managing director of Bracey’s Accountants, warned of an “insolvency timebomb” unless businesses factor in the cost of repaying the Government Covid-19 support.