Some recent details from the UK´s financial services sector suggest that these businesses are becoming more optimistic about the future. However, there are still uncertainties ahead that are causing concern.
The CBI Survey Shows Positive Signs
The effect of the coronavirus pandemic on the British economy continues to be felt, as the latest figures show the unemployment rate is at its highest in more than three years. A rise of 4.5% has caused concern, although recent growth in the number of vacancies gives some cause for optimism.
The Numbers in Full
The Organisation for Economic Co-operation and Development (OECD) has warned that Brexit with no trade agreement in place will add to the economic woes that the UK has suffered this year, as the country attempts to recover from the coronavirus pandemic.
What Did They Say?
The Paris-based think tank pointed out that the lack of a deal would make the British economy shrink by 6.5%. They pointed out that the chaos caused by the pandemic will make a disorderly Brexit even more awkward, as businesses aren’t as prepared for the period of transition as they should be.
A report carried out by the Financial Services Skills Commission and KPMG has shown that around half of the UK’s workers in the financial services industry would like to carry on working remotely for at least part of the week once the pandemic is over.
Details of the Study
The research found that this industry was able to react swiftly to the lockdown imposed in March this year, as 78% of financial services employees started to work from home.
Rishi Sunak has announced another huge financial package aimed at helping struggling businesses to make it through the pandemic. This time, the main idea is to help businesses that are open in the Tier 2 region and that need support.
Full Details
The CBI has recently confirmed falling retail numbers for October, leading to suggestions that the economic recovery from the initial lockdown could be stalling. Meanwhile, there is growing evidence that the employment crisis is hitting younger workers hardest.
The Figures from the CBI
The distributive trades survey in October shows the largest drop in retail sales since June, with this month weaker than expected. Among the sectors where a drop was noted were department stores, clothes retailers and non-food stores.
With the UK’s furlough scheme coming to an end this weekend, a look at the UK jobs market reveals the damage that has been done to it due to the coronavirus pandemic and the lockdown.
The Unemployment Rate Has Grown
The furlough scheme has largely done its job of protecting workers during this period, but the figures show that the unemployment rate has risen during the crisis, to a total of 4.5% by August. This compares to 3.8% before the pandemic struck, which was the lowest it had been in four decades.
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