One in three firms looking to cut jobs in the next three months

Nearly one in three businesses expect to decrease the size of their workforce in the next three months as the true cost of the Covid-19 lockdown begins to emerge.

A total of 28 per cent of firms have already begun laying off staff while two thirds have kept their headcount intact, largely due to the Job Retention Scheme. The findings come from the British Chamber of Commerce in its Quarterly Recruitment Outlook.

While its research showed 12 per cent of firms expected to increase their workforce, it also showed 18 per cent of micro firms (with fewer than 10 employees) expect their workforce to decrease.

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Forty one per cent of SMEs expect their workforce to decrease and 41 per cent of large firms expect their workforce to fall. While there has been an increase in the number of vacancies being advertised, the number of applications for these roles remain extremely high.

Jobs at riskJobs at risk
Jobs at risk

Co-executive director Hannah Essex, inset, said: “Our research demonstrates the Chancellor’s focus on protecting, supporting and creating jobs is exactly what’s needed to drive the UK’s economic recovery in the coming months.

“The Government should consider additional support for employers before the Autumn Budget to reduce the overall cost of employment and prevent substantial redundancies.

“Measures could include a temporary cut in employer National Insurance contributions and support to upskill and reskill employees as businesses adapt to change.”

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