UK eCONOMY
Skills investment must follow furlough to support an evolving workforce
In early October, the Office for National Statistics reported that the UK had under 2 million people on furlough, with the bulk belonging to the hospitality, construction and recreation industries. Ed Rimmer, CEO at UK-based asset finance provider Time Finance, says the end of the scheme will bring fresh challenges for SMEs over the next six months
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hat is concerning in the ONS data is what it tells us about the current proportion of the workforce still on furlough, which as of June this year stood at 1.9 million people.
The worry, of course, is that the end of the furlough will result in rising unemployment, but I think the future paints a much more nuanced picture. The end of furlough is going to be a catalyst for major shifts in the labour market and there will be a knock-on effect on skills investment and recruitment strategies.
Ed Rimmer, CEO,
Time Finance
Our experience throughout the pandemic is that many UK businesses adapted in response to the challenges they have faced, and recruitment has subsequently been a fundamental part of their strategies to diversify. And this is something we are seeing even more of; Time Finance’s recent survey found that one in three businesses are planning to invest in new personnel over the next six months.
So, the real question we should ask of the ONS data on the effects of furlough is how it can help address worker shortages in the UK – an arguably better challenge than overcoming widespread unemployment, but a challenge nevertheless.
Time Finance’s recent survey found that one in three businesses are planning to invest in new personnel over the next six months
Recruitment is front of mind
Further echoing optimism amongst UK businesses, and indicating that recruitment is very much front of mind, our survey found that 80 per cent of businesses plan to use an alternative finance solution to help invest in new personnel and bring in fresh talent.
Ensuring a sufficient level of working capital in the business will be a priority to support the delivery of growth plans. We are seeing an increase in the number of firms looking to access a range of finance solutions to support cashflow or bring their expansion plans to life.
I have every confidence that the economy will get back on track faster than expected and the next 12 months will see a turning point for UK workers.