Home Business News There will be a ‘bloodbath of redundancies when furlough support starts to reduce’

There will be a ‘bloodbath of redundancies when furlough support starts to reduce’

by LLB staff reporter
15th Jun 21 9:56 am

UK chancellor Rishi Sunak will not extend the furlough scheme which could lead to a “bloodbath of redundancies” and with the benefits that are on offer pre-Covid many people are reluctant to go back to work.

There are mixed feelings amongst industry leaders with one questioning if the furlough scheme is “masking mass unemployment,” but one thing we know for sure, “it’s causing a stagnant labour market.”

Sarah Loates, founder of Derby-based Loates HR Consultancy said, “A further fall in unemployment and more people on payrolls is clearly good news for the economy. But as furlough support starts to reduce, there could sadly be a bloodbath of redundancies. Employers and employees should engage with one another to get people back into the workplace.”

Karen Watkins, Founder of Somerset-based HR firm, Rowan Consulting warned, “As a business that supports a number of companies with employees still on furlough, the end of the Government’s support scheme is the elephant in the room that some businesses are not yet ready to face.”

Emily Alexander, Founder at Redundancy Support UK said, “The jobs market is certainly picking back up but the quality of the roles and pay/benefits on offer are behind pre-COVID conditions so many people are reluctant to go back to work. Wellbeing must now be part of the employee value proposition and forefront in all business owners’ minds.”

Kim Rix of London-based specialist travel firm, Gemstone Detective: “The whole economic climate has become so artificial because of the Government’s furlough scheme. It’s impossible to predict what the jobs market will look like when the scheme ends. My gut feeling says it will be sheer pandemonium.”

Rhys Schofield, MD of Belper-based Peak Mortgages and Protection said, “The end of furlough may actually be good for business as staff move from Zombie firms to those that have adapted to the brave new world and are ready to grow. The end of furlough will release people into a labour market crying out for new recruits.”

Natalie Dawson, Co-founder of DawsonWard Creative, “As live entertainment consultants and producers, we have put together plans to employ up to three people within the next 12 months. Because we can see no clear, credible or believable Government plan to support business right now we are holding off as long as possible.”

Oliver Bryant of Barry Island and Cardiff-based Tokyo Nights restaurant said, “I’ve been trying to find full-time staff with hospitality experience for ages now, but with no response. They’re as rare as hens’ teeth. Plenty of marketing and engineering graduates applying, though, which is a sign of the times.”

Craig Bunting, co-founder of Midlands-based coffee shop independent chain, BEAR added, “The big question is whether the furlough scheme is masking mass unemployment, but one thing we know for sure, it’s causing a stagnant labour market. Who’d risk moving from job to job at a time of such uncertainty, when the ability to be ‘re-furloughed’ is gone?”

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