The consequences of the Corona virus are coming face-to-face with the people around the globe. To name a few, these consequences include unemployment, uncertainty regarding all jobs, wage cuts and failure of businesses. The industries which have suffered the most are corporate sector, finance, companies of all sizes and IT. Experts have declared that the economy in the areas of IT, green infrastructure, and high-level food industries will be redefined. Following are the adverse effects of the pandemic in a few sectors within the UK.
Effect on the employment rate
In the UK, just like any part of the world, jobs are being cut off due to the pandemic. But the statistics do not show an increase in the unemployment percentage which is surprising. In fact the 3.9% of the unemployment calculation makes it feel as if the pandemic didn’t affect this aspect. Nevertheless people are unable to search for new jobs during the lockdown. While others have deliberately chosen to be inactive until the pandemic goes by. The inactive amount of people has increased by 301,000 within three months. The main reason unemployment has not yet spiked is down to the governments job protection schemes. The government is responsible for paying most of the wages for the people on furlough. This furlough period will end by October which is making people anxious. This is when the true unemployment effects could be noticed.
Effect on the construction
The big construction projects came to a dead-end. No inspection, planning or any measures could be taken place during the pandemic. Problems have increased in the supply chain. However, the market is beginning to gain ground as companies implement strict Covid guidelines. The Construction market accounts for 7% of GDP and is vital to the livelihoods of many people in the trade.
Effect on the property market
Since people have been locked, they are now extra cautious and hesitant about purchasing a new home. Banks are also being reserved and raising deposit requirements from 5% to 15%. Investing in property is the biggest expense and now that the public is backing away from taking this decision, the prices of homes have fallen down drastically in parts of the UK. In May, the biggest decline from the last 11 years was observed in the property costs. The overall
prices fell by a staggering 1.7%. However, economic experts claim that the situation will soon get better as the lockdown will start to get lifted. The property sector will bloom again as the economies and the housing market will rise up.
Moreover, the work-from-home situation has eliminated the transportation and commute which also influences the housing market. Since people are realizing that they can work from the comfort of their own home, the search hunt for houses away from the city has increased as well. Preferences have shifted as people are looking for an office space in home and although this might be temporary, it is clear that people are rethinking the dynamics of the work and home life.
The COVID is an unprecedented situation and it is affecting all industries globally. The only solution is to follow the social distancing measures in order to minimize the spread of the virus.