New data reveals that almost half of UK businesses (42%) have less than 6 months of cash reserves as a result of lockdown restrictions. This has contributed to a huge decline in job vacancies across all industries.
However, the personal finance experts at money.co.uk reveal that job vacancies are set to rise. Figures highlight that one quarter (25%) of businesses that have paused trading are expected to reopen by next week.
Money.co.uk has analysed data*, revealing the six sectors making the biggest return following the Coronavirus lockdown:1) Manufacturing (52% to reopen by mid-June)
2) Construction (42% to reopen by mid-June)
3) Wholesale & Retail Trade; Repair of Motor Vehicles and Motorcycles (42% to reopen by mid-June)
4) Professional Scientific and Technical Activities (25% to reopen by mid-June)
5) Transportation and storage (25% to reopen by mid-June)
6) Accommodation and Food Service Activities (24% to reopen by mid-June)
Further insights divulge that various industries that have paused trading as a result of Covid-19, are yet to readjust. Of businesses in the “Arts and Entertainment” sector, 93% have no plans to open till at least mid-June.
Additional data** reveals that smaller businesses (1-9 employees) have suffered the biggest blows due to Covid-19, resulting in a dramatic drop (-36.6%) in available vacancies. This is closely followed by small-medium sized companies (10-49 employees), who have seen a similar slowdown in vacancies (-36.1%).
Joel Kempson, personal finance expert at money.co.uk said “The decline of the jobs market is a great worry to both those currently unemployed and anyone working in the industries hit hardest by the COVID-19 crisis.”
“Recent figures highlight that 89% of small business owners are feeling the financial pressure of COVID-19. However, there may still be financial help available in the form of UK Government-backed loans and other support based on your firm’s circumstances. It is vital business owners assess all options available to them to understand if they are still eligible for grants or loans.” Money.co.uk has outlined the guidance for firms looking to go back to work as lockdown has been lifted, with guidance on additional financial help for employers: https://www.money.co.uk/guides/coronavirus-employer-back-to-work-guide#financial-help-for-employers
Note to Editors: “42% of businesses that have less than six months cash reserves” references “42% of businesses responding to the Business Impact of Coronavirus (COVID-19) Survey (BICS) who had less than six months of cash reserves”. Related to businesses that have not permanently stopped trading.