Two thirds of workers face job losses or pay cuts

Tuesday 14 April 2020

Two thirds of workers in Jersey are facing job losses or a reduction in income as a result of the pandemic, according to a survey by a local recruitment firm.

Up to 44% of people surveyed last week by Kendrick Rose said they no longer had any income from work, while 20% of people had a reduction in income and 3% were receiving government support.

In addition,

• 12% of people said they had seen a reduction in pay or hours;
• 10% had been made redundant, and 10% furloughed of which nearly two thirds worked in retail or hospitality;
• 11% had to close their business;
• And 24% saw their work stop.

Pictured: The survey shows two thirds of workers in Jersey are facing job losses or a reduction in income.

The self-employed and business owners appeared to have been particularly badly affected.

67% of business owners and nearly three quarters of self-employed people surveyed claimed they are no longer receiving any pay. In comparison, 69% of people in finance are working at home on full pay.

Overall, only a third of Jersey workers are working at home on full pay, or have not experienced a change in income.

“Just as Coronavirus can affect anyone, the economic aspects of the pandemic have a massive impact on everyone working in Jersey too,” Shelley Kendrick, Managing Director, Kendrick Rose, said.

“Every sector is affected by some degree of job losses or reduction in pay. However, our survey shows that business owners and the self-employed are potentially the worst hit.”

Pictured: Only 41% of the self-employed and business owners said they will continue running their business or resume their self-employed role.

Up to 61% of workers surveyed said they intend to continue working for their employer once the Coronavirus pandemic is over.

Of those considering looking for a new job, 18% said they are motivated by a desire for greater job security, while 9% would like to move because they are unhappy about how their employer has treated them in response to the covid-19 outbreak.

The outlook for the self-employed and business owners post-coronavirus is less certain. Just 41% say they will continue running their business or resume their self-employed role, while 19% think they won’t be able to, and 41% don’t know.

“This is a really difficult time for businesses, and smaller businesses often have tighter margins and find it harder to make cuts without losing staff who may have been with them for many years,” Ms Kendrick said.

“It could be a long time before the economy comes back, but everything is cyclical, and when it does, employers who have treated staff fairly and looked after them as well as they can in difficult circumstances, are likely to find it easier to retain talent.” 

The survey's results were released following the publication of new figures by Statistics Jersey, which showed a spike in unemployment.

Pictured: The latest actively seeking work figures from Statistics Jersey.

According to their latest report, more than 1,000 islanders were actively seeking work at the end of last month.

However, it's feared that number could have already dramatically risen as more businesses suffer following a drop in demand due to covid-19.

CLICK HERE for the full Statistics Jersey report.