U.K. Jobs Recovery Stalls With Business in Doldrums
The recovery in U.K. investment and hiring by companies have come to a halt.
(Bloomberg) -- The recovery in U.K. investment and hiring by companies have come to a halt as business leaders fret about Brexit and the resurgence of the coronavirus.
Measures of net employment expectations and investment intentions both fell in September, according to a survey by the Institute of Directors. The survey showed that the top concern after the pandemic and the impact on the economy is uncertainty over trade talks with the European Union.
The think tank called on the government to cut employment taxes, give relief on investment, and help firms with cashflow.
“The overall business outlook appears to be stuck in the doldrums,” said Tej Parikh, chief economist at the IoD. “The Treasury should step in to support job creation.”
Pleas for the government to do more are growing louder as winter approaches. New social restrictions are being introduced to stop the renewed spread of the virus, just as the pending exit from the EU’s single market is expected to curtail trade.
While a generous wage top-up expires this month, Prime Minister Boris Johnson’s government is introducing more limited programs to cushion the blow.
Mental Health
A separate report by the Resolution Foundation found that the crisis has hit the oldest and the youngest in society the hardest. Youth unemployment could rise to around 17%, the highest since the 1980s.
The proportion of 18-29 year olds experiencing poor mental health has increased 80% since the pandemic started. The figure for over-65s, who spend more of their income on socializing than any other age group, increased 68%. The older generation has also born the brunt of higher mortality, the research group said.
“With infections rising again, the Covid crisis is sadly far from over,” said David Willetts, president of Resolution and a former government minister. “That means the risk of losing a Covid generation to long-term youth unemployment is real. But there is plenty that policy makers can do to prevent it.”
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