Jump in number of businesses proposing redundancies while supply chain issues also bite
- The number of employers proposing redundancies in the week to 13 November 2022 was 143% of the level in the equivalent week of 202
- The total number of online job adverts rose by 3% on 18 November 2022 but was 14% down on the equivalent period of 2021
- UK credit and debit card purchases increased by 2 percentage points, but budgets ringfenced for spending on work and essentials
- 13% of businesses reported experiencing global supply chain disruption in October 2022
The ONS has released data on our spending patterns and the difficulties businesses are facing
Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown: ‘’The recession already appears to be piling up problems for businesses who are looking at ways to cut costs by slashing jobs. We’ve had plenty of warnings that the contraction of the economy would lead to a rise in unemployment. The forecasts from the Bank of England, and the Office for Budget Responsibility have varied in severity, but it’s already clear that redundancies are beginning to tick up. The latest data from the ONS shows that the number of employers proposing redundancies in mid-November was 143% of the level in the equivalent week last year. Although there appear to be plenty of positions still available in the labour market, those on offer may not be desired, and may be less likely to offer as favourable working conditions. Although the number of UK online job adverts increased compared to the previous week, by around 3%, this was mainly boosted by a jump of a quarter in available part-time and weekend positions publicised. This is an expected seasonal boost in the jobs market and the number of online jobs ads has decreased by 14% compared with the same period last year.
Despite high hopes that supply chains issues would have significantly eased by now, that has not yet materialised with around one in seven businesses reporting they were still facing difficulties in October. Supply chains are proving to be a lot less elastic than before the pandemic and ongoing Covid lockdowns in China are adding to worries.
UK credit and debit card purchases increased by 2 percentage points in the week to the 17th November, but this isn’t a sign consumer are throwing caution to the wind and splashing the cash on early Black Friday promotions. Instead it seems we are still ring-fencing significantly more of our budgets for spending on commuting and on essentials amid the cost-of-living crisis, and spending a lot less on our social lives, which doesn’t bode well for the travel and hospitality sector. Work-related” and “staple” spending in mid-November were above their February 2020 average levels at 137%, and 111%, respectively while social spending remained below its February 2020 average level at 96%.’
Click here for the full report.
