Analysis
By s1jobs
Rishi Sunak’s decision last week to extend the furlough programme by a further month to the end of April has given those workers some degree of festive respite, but for many it will only be a stopgap.
The Chancellor had planned to hold a review of the wage subsidy programme in January to determine whether the economic outlook had improved enough for companies to start contributing to it. That timeline meant that employers who might have to make more than 100 redundancies – and are thus required by law to hold consultations for at least 45 days – would have had to start laying the groundwork for those plans now.
But with the virus resurgent and the completion of mass immunisations still months away, stringent lockdown restrictions that have stifled the economy will continue into the first half of 2021. Add to that the likelihood of Brexit sparking disruption at ports and pushing up the price of consumer goods, it’s little wonder Mr Sunak not only ditched plans for his January review, but also tacked on an extra month of furlough support.
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This, however, is merely a matter of timing as the scheme will come to an end and force further job cuts in the first half of the new year.
Even for those who retain their employment, the problems don’t stop there: according to a new report commissioned by the Fabian Society, up to 61 per cent of jobs currently furloughed are at the highest risk of automation as the Covid crisis accelerates technology-driven change in the workplace.
Taking retail as an example, we’ve already seen how restrictions have altered the way we shop, with more people increasingly choosing to do so online. If this becomes a permanent feature, there will be far less need for staff to run predominantly online operations.
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As the Fabian Society has pointed out, low-paid and disadvantaged workers are most likely to be in jobs at the highest risk of automation. Without decisive action, these developments being driven by the pandemic create a serious risk of exacerbating social disruption and fuelling an increase in inequality.
A window of four months lies before us in which furloughed workers should be offered free training and careers counselling to prepare them for what might come next. With a workforce in urgent need of mass redeployment to align skills with demand, it would be the most valuable gift on offer this holiday season.
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