Covid-19 fall-out will hit jobs market hard

The loss of a significant number of jobs at Ovo Energy in Perth – and thousands more elsewhere within its network – will be keenly felt, especially as it comes just months after the company assured workers their roles were safe following the £500m acquisition of the business from SSE.

But flagged high within Ovo’s reasoning for making the cuts was the impact of Covid-19 on its operations.

There will be those who will see that as a convenient excuse for down-sizing, but there is no doubting that coronavirus has changed the face of the global economy.

Many companies have simply stopped trading and others have completely re-worked their business plans to adapt to the reality of new regulations, customers cooped up at home and households with significantly less disposable income to spend than before.

What that all adds up to is uncertainty, which is probably the greatest enemy of the business world and leads to firms drawing back on investment plans, the hoarding of cash and, ultimately, economic stagnation.

The UK Treasury is currently providing tens of billions of pounds of aid through furlough and various business support schemes to keep the economy ticking.

The hope is that coronavirus will prove to be a short, sharp economic shock to the financial system and it will be followed by an equally rapid return to something resembling normality from a commercial and productivity perspective.

But there is no guarantee of that scenario playing out and the likelihood is that many more companies – both large and small – will be forced in the months ahead to make tough choices as they adapt to the new normal.

As we go through that difficult period, what must not be forgotten is the people behind the statistics.

For many, work is wrapped up tightly with pride, selfworth and the role of the provider. Losing those things unexpectedly can take a toll far beyond the loss of income and the uncertainty of how to make ends meet.

Advice and support is available through a variety of agencies to those in such circumstances.

The authorities must ensure the help available reaches those in need and no-one is left facing a bleak future alone.