Impact of COVID-19 on UK Job Market

This report discusses the impact of the COVID-19 pandemic on the job market in the United Kingdom. It highlights the economic downturn, companies' financial constraints, and the resulting job losses. The report also examines the sectors most affected and the risks faced by workers, particularly those earning less than £10 per hour. Recommendations are provided for the government to mitigate the negative impact on jobs.

The impact that the COVID -19 pandemic on the UK JOB MARKET in the near future

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
CONCLUSION...........................................................................................................................................4
REFERENCES............................................................................................................................................5

INTRODUCTION
Due to COVID 19 pandemic all nations of world have been affected in a negative
manner. The most common affect because of this pandemic is on economy of nations (Khunti,
Singh, Pareek and Hanif, 2020). In the United Kingdom, due to this disease many people have
lost their jobs because companies do not have enough funds to pay them. The report consists
detailed information about impact of COVID 19 on jobs in United Kingdom in upcoming time
period.
MAIN BODY
This has been estimated that economic activity (as measured by GDP) has fallen
approximately 30% by February 2020 in a traditional lock-down week in May 2020 in United
Kingdom (About impact on UK economy, 2020). In the week of 6-19 April, 23 percent of
companies briefly trapped or abandoned their enterprises, with about 60 percent of companies
also showing a decrease in sales, as per the Office of National Statistics. Due to this loss of
economy and companies, jobs of people is at higher risk or some people have already lost their
jobs. In the time period of lockdown around 7.6 million jobs were at risk. Basically, in the
United Kingdom job of those people is at risk who earns less than 10 pounds per hour. Herein,
below a graph is presented that shows jobs which are at risk:

This chart is showing that biggest number of job losses is in retail and wholesale – 1.7 million, or
22% of the 7.6 million totals. Whilst the demand for food and online shopping labor and
associated wholesale tasks has increased, the large numbers of provisional banned the sale in the
nonfood retail sector are overshadowed (About impact on jobs in UK, 2020). The second-hit
sector, with 1.2 million fairly low-paying workers are at risk, is in exact terms accommodations
and service industries. The music, culture and infrastructure industries, such as airlines, are also
particularly sensitive. Unfortunately, there is indeed a significant correlation in the COVID-19
crisis between both the risk of a staff getting laid off and then laid back and the possibility of a
poor salary later. The sector analysis originally explained shows it already. In 2019, the median
monthly time pay was around £8.60 for hospitality and for restaurant management;
communication amounted to £ 19.20. More broadly, the measured average wage for the five hit
industries stands at about £10.60 an hour; it is nearly £ 14.60 or nearly 40 times better for the
five least-infected industries. It is being estimated that people who earns on a daily basis are at
more risk and due to which they may lose their jobs (Watkins, 2020).

CONCLUSION
On the basis of above project report this can be concluded that almost all sector of
business environment are at risk which may lead to negative impact on general public of United
Kingdom as they may lose their jobs. The main cause of this job loss is negative impact on
economy of United Kingdom. In order to deal with critical situation the government of United
Kingdom should take corrective steps to save jobs of people in future.

REFERENCES
Books and journal:
Khunti, K., Singh, A.K., Pareek, M. and Hanif, W., 2020. Is ethnicity linked to incidence or
outcomes of covid-19?
Watkins, J., 2020. Preventing a covid-19 pandemic.
Online:
About impact on UK economy, 2020. [Online] available through :< https://www.business-
standard.com/markets>
About impact on jobs in UK, 2020. [Online] available through :<
https://www.mckinsey.com/industries/public-sector/our-insights/covid-19-in-the-united-
kingdom-assessing-jobs-at-risk-and-the-impact-on-people-and-places#>