Since lockdown measures have eased, the statistics show that redundancies have soared, and job vacancies have plummeted to an all-time low since records began.
These figures have not been helped by a growing trend in using remote workers and hourly professionals instead of hiring directly.
It might not just be a boom in remote working what is about to unravel. Maybe the way managers use modern professionals is turning a corner as well. Learn more right here.
COVID-19 Redundancy Numbers in the UK
The Office for National Statistics released redundancy figures for July as the UK exits its social distancing measures and people return to work. Or will they?
The results suggest that as of June, the number of workers on the PAYE scheme (i.e. not self-employed) has fallen by 2.2%. This equates to a total of just under 650,000 people not in a job today who were in work at the start of lock-down.
More importantly, the number of vacant job openings has crashed to its lowest since such statistics started being collected at the turn of the century. There are just 333,000 jobs being advertised in the UK today, which is a staggering 24% lower than the previous lowest record recorded in 2009 in the midst of the last recession.
Why Are There More Redundancies?
The increasing number of redundancies and lack of advertised jobs could be expected as we enter the post-COVID-19 world. Businesses are not able to keep their staff on without the Government support they had been receiving or a stable income.
But it might not just be cautious business planning or free falling revenue that is causing redundancies. There is also the possibility that businesses have found a more financially secure way of getting jobs completed.
We’re talking about outsourcing jobs to admin companies and freelance workers.
In-Demand Professionals Are Being Bought Per Hour
Businesses after COVID-19 have been contributing to the already-growing trend in outsourcing tasks to remote independent workers and agencies instead of hiring part-time/full-time staff.
Figures reported by Forbes – collected from freelancing platform Upwork – have indicated that almost 50% of managers are more likely to use a freelance professional since COVID-19.
The most popular professionals that are chosen for outsourcing work to are:
- Virtual assistants
- Content creators
- Sales professionals and marketers
Employing Vs Outsourcing
Businesses appear to be feeling more comfortable hiring project workers because they are not tied to any long-term commitment, as well as having to pay holiday rates for these employees or the other financial obligations that come with hiring staff yourself.
Research carried out by The Administration Hub has found that the true cost of hiring an administrator on a £24,000 per annum salary is actually over £40,000. When the same amount of productivity can be bought per hour or on a project basis at just under £20,000.
That’s a colossal saving for using project workers instead of hiring – and a driving incentive for businesses in unstable situations after COVID-19.
Choose The Administration Hub for Your Outsourcing Needs
The Administration Hub is on hand to support the new wave in business demand. Whether it is a virtual assistant, bookkeeper or admin guru, we offer various packages to meet different budgets. We would like to support you, so you still have a quality service within your business but on a flexible basis to meet your needs and budget. For example, a business or individual can buy a set number of hours and use the expertise within our team to cover an array of areas under one umbrella
Contact our team now to discover more!