7.6 Million Jobs, 24% of the UK Workforce at Risk
Around 7.6 million jobs, or 24 percent of the UK workforce, are at risk because of COVID-19-related lockdowns. People and places with the lowest incomes are the most vulnerable. (McKinsey & Company 2020)
The numbers are unprecedented, the sheer volume of people and the diversity of sectors and job roles will require a revolutionary approach to address the situation and get people back to work.
According to the Office of National Statistics, in the weeks from April 6 to 19, 2020, 23 percent of businesses had temporarily closed or paused trading, with around 60 percent of businesses that continued to trade reporting a fall in revenues. Economic activity will recover as lockdown restrictions are lifted, but the speed and patterns are highly uncertain and will vary by sector, geography, and demographic.
Lowest Income more Vulnerable to Job Loss
Such a rapid fall in output has significant implications for employment. We find that during lockdown, around 7.6 million jobs are at risk—a term we use to encompass permanent layoffs, temporary furloughs, and reductions in hours and pay. The risks are highly skewed: people and places with the lowest incomes are the most vulnerable to job loss.
Mental Health and Wellbeing is a Key Factor
The implications for workers go far beyond those furloughed or laid off, however. According to research by the London School of Economics, increased unemployment creates significant anxiety among those who retain their jobs; the negative impact on well-being experienced by the whole community is four times the effect on the individual alone. Moreover, for people still at work, much has changed. Around 30 percent of the United Kingdom’s roughly seven million key workers are concerned about health and safety at work. Only a minority of all UK workers, around eight million people, are working from home, but almost 20 percent of them are finding it difficult. Overall, 40 percent of people say their work has been affected.
Technology Has to be the Answer
The historic approach of corralling people into offices to sit in front of Job Centre Plus staff of Caseworkers / Job Coaches is an expensive, labour intensive and often degrading experience for the job seeker or client.
Through a series of meetings, form filling, subjective workshops, etc, that are often mandated (enforced), we end up with a mix of people who want to work and are motivated to work, people who are doing everything to avoid work through circumstances (the gig economy or alternative income) so are disruptive and often challenging, and a mix of people who are deemed fit for work and are often fighting their case or assessment. This results in an expensive diagnostic process, that is subjective and often driven by opinion, without data, evidence, or any systematic way to understand demand.
• What jobs people want based on current job market availability
• How they perceive themselves in readiness for those jobs, or a change of direction or career
• What their goals are as an individual (taking into account their circumstances)
• What they believe the type of support they require to help them achieve their goals
• When and where they would like that to take place
• Their level of motivation
• The barriers they perceive to be between them and their career path
• Their perception of their mental health, anxiety, stress, depression, etc
• Safety net around suicide and suicide prevention
Shift Ownership - Ensure the Job Seeker owns the Data and Journey
A performance report for each job seeker and service by contract and region, published nationally for comparison, to promote learning and development, creating a professional evidence driven service, driven by data that leads to the design of the right solutions, negating subjectivity.
It will allow you to match the job market to their post code, capabilities, and capacity.
Red Dot 365 CEO John Williams
Tel: 07425 558130