What will the economy look like in the UK after the Corona pandemic?
The state of the UK labour market is well hidden because of wage subsidies covering 9.1 million jobs. A record drop in the number of hours worked provided a glimpse of what is going on, but a better understanding should be made public by the end of August. The current plan is that the economy slowly opens up in August, with the UK Government hoping that people who were indoors, in their homes for the last several months, will begin hitting the streets and favouring their the favourite restaurants and bars.
Unfortunately, the beginning of this month has not been great, with most people choosing to not come out of these homes. Nothing about the Government’s handling of the pandemic over the past months inspired confidence with things going according to plan. For basic tasks like the inadequate stock of protective equipment, which were a necessity at the time of the pandemic, or not having enough spare capacity in the NHS. The elderly were as unsafe as ever and with hospitals turned into COVID centres were not even capable of getting decent help throughout. With such a large amount of uncertainty, people choose the better option which was following the previous rules and staying home as much as they could. They preferred working from home instead of going out and just self quarantined.
The overall system did not start looking any better with the number of workers on company
payrolls falling by 730,000 between March and July as another 81,000 lost jobs since June, due to cutbacks by employers hit hard by the Covid-19 pandemic. Even with the Government aid, companies were still cutting down on expenses, and one of the ways that they were doing this was through the staff. A lot of the workers that were handling automatable roles found
themselves out of work to be replaced by automated software and technology. Banks, insurance companies, and financial companies were doing this faster than ever.
A lot of the recent startups and smaller companies already had arrangements to remote work for all of their employees, but this was not necessarily true for the larger companies who found themselves in a tough situation. Since some jobs could not be easily replaced by machines, meetings and interviewed were handled over conference calls or video calls, which meant that many new employees coming in, did not get a chance to interact with any of the people within the establishment in person.
Not meeting a lot of people in person is one of the main reasons why employers began handling background checks on a lot of their employees. Online meetings were rare in the past, but becoming a lot more common now. Additionally, some jobs needed background checks handled depending on the type of work. Since background checks were handled by the employer, they were allowed to go through an enhanced DBS check for all the information on the people working in their company. Not all companies need as thorough checks, and the ones that do not need them can go through a CRB check which would tell the employer if the people working in their company have a criminal record.