Comprehensive Analysis: COVID-19's Impact on the UK Job Market (2024)

This report provides an analysis of the impact of the COVID-19 pandemic on the UK job market. It examines the increase in unemployment rates, the decrease in disposable income, and the potential long-term damage to job prospects, especially for younger generations. The report highlights the challenges faced by businesses due to government restrictions and reduced market demand, impacting labor requirements. It discusses sector-specific impacts, such as the decline in tourism and hospitality and the growth in telecommunications. The report references studies on job search during the crisis and determinants of job losses, emphasizing the need for government intervention to mitigate the negative effects on the UK economy and the living standards of its people. The analysis covers the period up to February 2020, and estimates potential GDP decline.

The impact that the
Covid-19 pandemic on
the UK job market in
the near future

TABLE OF CONTENTS
Impact of Covid-19 pandemic on UK job market in near future.................................................4
REFERENCES................................................................................................................................6

Impact of Covid-19 pandemic on UK job market in near future
Covid-19 is a pandemic that have affected various economic of different countries such
as increase in unemployment rates, decrease is disposable income of customers and minimum
addition to in GDP of country. It is too risky for economic as can put 600000 people that are
between age 18-24 years old can be unemployed in future year thus it can lead to long term
damage and adverse impacts on job prospects and pay. Around 800000 people are not able to get
education in current year which can lead to rise in 6% unemployment rate in UK economy.
Therefore children or people that have left education in current year have to face challenges of
less pay and reduced employment or job prospects (Montenovo and et.al., 2020). It have been
reported that people that have one year left education will be paid 7 or 9% lower in case of mid
and low skilled workers. So, it can be stated that younger generation are at more risk of
unemployment and lower pays in future time due to minimum available of job. Covid-19 have
increase level of competition and crises in UK job market as there are no such work, demand so
it can be huge and long term threat for younger generation. Business have less opportunities to
expand their market due to various restriction made by government, high interest rates and low
demand in market has directly impacted on requirements of labour to fulfil needs and wants of
customers (Hensvik, Le Barbanchon and Rathelot, 2020). Due to leave of one year education
students has to suffer a lot as chance of competition increases because they have limited skills
and there are UK has high population between age of 24-60. Many of the people or employees
are not likely to come to office because of threat of spread of corovirus that have resulted in
increases chance of absentees. Covid-19 has decreased GDP of UK roughly by 30 February 2020
as most of the enterprise have paused or closed their operation for specific period of time thereby
decreased in their overall revenue. It was further estimated that GDP can more shrink to 9% in
near future creating high threat for availability of job in near future. 7.6 million job was at risk
during the pace of lockdown in UK that have impacted overall health and well-being of
individual. Impact of Covid-19 in economic is uneven due to lockdown as some sectors are
growing while other are facing various challenges. For examples: tourism and hospitality is one

of the most crucial sectors that have highly contributed in GDP of UK but due to Covid -19
many people have to lost their job who belong to such sector (Williams and Kayaoglu, 2020). On
the other hand telecommunication industry have grow in situation of Covid -19 as people are
making more and more use of digital technologies to connect with each another. So, it can be
stated that if major steps were not taken by government than it could impact UK economy and
job market for long term leading in decrease in living standard of people.

REFERENCES
Books and Journals
Hensvik, L., Le Barbanchon, T. and Rathelot, R., 2020. Job Search during the COVID-19 Crisis.
Montenovo and et.al., 2020. Determinants of disparities in covid-19 job losses (No. w27132).
National Bureau of Economic Research.
Williams, C. C. and Kayaoglu, A., 2020. COVID-19 and undeclared work: impacts and policy
responses in Europe. The Service Industries Journal, pp.1-18.