November Saw the Lowest Set of Redundancies Since the Start of The Pandemic

COVID-19

In the period from August to October, the ONS reported a record level of redundancies at 370,000.

But November proved hopeful as we saw the least amount of planned redundancies since the pandemic began.

This data revealed by the BBC shows the employers who plan to make redundancies of 20 employees or more of which the Insolvency Service must be informed, via an HR1 form.

Despite it being the countries second lockdown but the less strict of the three, this improvement is believed to be due to the extension of the furlough scheme that now runs until the end of April.

The month saw a total of 36,686 redundancies proposed, a figure which was far reduced from its 156,000 peak in June.

According to the BBC, 550 employers informed the government of these plans, the lowest since April but still 80% higher than last November.

The reason this data proves particularly useful is that it provides us with insight into the coming months.

Insights which cannot be made by the data collected by the Office for National Statistics.

Big brands including Sainsbury’s, Greggs, John Lewis and Edinburgh Woollen Mill were among those announcing job cuts.

With big-brand closures, Arcadia and Debenhams expected to have fallen short of the month’s figures.

And although November saw a 32% increase compared to 2019, it does show far bigger improvement compared to the summer months.

It is also far lower than its previous month, which saw a 93% increase just as the furlough scheme was due to end.

However, these figures do not include all redundancies, as those planning to make less than 20 do not need to inform the government.

It is also expected that there will be more redundancies because of Brexit and the UK’s third lockdown, which is expected to cause redundancies at mass in retail and hospitality.

We just hope that with the vaccine roll-out, we begin to see light at the end of the tunnel for businesses in 2021