What does business growth look like in 2021
The covid-19 pandemic has changed the business growth world and the way employers work, and it looks like the changes are here to stay. But, while we have not completed the fight against Covid-19, there is light at the end of the tunnel. With vaccinations on the up. 2021 will be the year of continual adaptation and transition.
Business unemployment rate
Indications have shown the job market has not yet managed to create significant opportunities. As a result, HMRC has indicated a fall in the number of employees on company payrolls in March 2021. The decline of around 56,000 is the first decline since November 2020.
A lack of opportunities during lockdown for those starting their career needs to be addressed with the rise of young people not looking for work and moving into economic inactivity. The ONS states a decrease in the employment rate for 18 to 24 year-olds from 5.1% during the last quarter.
There are signs that the job market is stabilising, with a 16% rise in job vacancies in March. Economists express promising signs for the jobs outlook. Preparations for the ease of Covid-19 restrictions are underway. Employers are starting their hiring processes with the potential of customer demand.
Tej Parikh, the chief economist at the Institute of Directors, said: “The economy is not out of the woods yet, and the government should remain prepared to extend support if the roadmap meets speedbumps.
“Meanwhile, it is important that retraining and upskilling schemes hit the ground running to help workers find new opportunities in the post-pandemic economy.”
Businesses have spent the last year keeping their head afloat and trying to adapt to unexpected circumstances. As a result, many businesses had to adjust the way their employees worked. Some began working from home, others Furloughed, various remained operating, and some shut down business altogether.
Those that have been able to have turned to digital to help them adapt to the new circumstances. Across several sectors, online and eCommerce has become a big saviour. For example, schools and many other businesses have adopted online lessons and meetings to meet their business needs.
As we start to win the fight against covid-19, businesses have started to welcome staff back into workplaces. They are making sure to maintain a safe and healthy work environment. Numerous businesses have opted to keep flexible working, with many employees still working from home.
The Commercial & Driving industries had a resilient quarter. With the increase in consumers level of pent-up demands, it isn’t implausible to argue these sectors are on the verge of strong economic growth. Arguably, the retail sector is the most significant property-casualty of the pandemic. Nevertheless, it will be the most interesting opportunity in 2021. With 40,000 vacant retail units across the UK, repurposing empty stores into residential properties and city logistic hubs is at the top of the agenda.
Retention rates for Legal trainees remained high as most trainees stayed with their primary firm. Since last quarter there has been a gradual increase in the demand for M&A and Dispute lawyers. Lockdown restrictions have created many issues within the business world. Including insolvency, reconstruction and contracts.
Many Engineering organisations have changed products and services for their survival. They will be continuing this throughout 2021. Sustainability is something that the industry, among others, will be supporting. With the UK government set to invest £4billion to help create 250,000 ‘green jobs’, engineering will see new jobs emerging. So 2021 is looking positive for this industry.
The Industrial sector looks promising in the upcoming months, with Government support on projects, including the low-carbon industrial sector investment.
These are just a few Industries growing in the current economy. It will be interesting to see how the rest of 2021 will impact the growth of the other industries.
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Read our previous blog here: Returning to work: Life after furlough.