As public spending soars to more than £190bn, over nine million workers have used the furlough scheme and the global economy takes a £7.7trn hit, it is undeniable that the global coronavirus pandemic has generated some eye-watering numbers.
In the UK, the establishment of the UK furlough scheme has been at the forefront of those figures. Created by the government earlier in the year to assist organisations and employees through a challenging period of instability, these measures have been costly, but essential for the UK economy and those that make it work.
When furlough was put in place, the future of many companies was on a knife-edge as lockdown instructions were issued. As a result, millions of jobs were in severe danger. If not for furlough, a wave of redundancies would have seen the numbers claiming unemployment aid soar even higher. It would have been catastrophic.
But time has moved on since March, and, now that there are signs of economic recovery, the current furlough scheme is ending and the Job Support Scheme will replace it. This means employers have to pay 55 percent of pay, while the government pays for 22 percent. This is a significant increase, but very few expected the furlough scheme to continue in its current form, even as we step into a second wave.
Debate rages at decision time for furlough
With the nominated end to the furlough support coming into view, influential stakeholders from unions to employer representatives had been asking the Chancellor to reconsider its imminent closure. There is a significant contingent urging the UK to follow the route of countries such as Germany, which have decided to keep business support measures in place into 2021.
Related Content
Many believe that without a scheme as bold as furlough, employment rates will fall off a cliff edge, leaving millions without work. The argument is that a continuation of the furlough scheme or another method such as the Job Support Scheme, would help not only stimulate the economy but avoid a significant credit default on personal debt that could run into the billions.
But there is another argument for this support to continue – the mental health of UK workers.
The price and profit of wellbeing
The Office for National Statistics (ONS) says that since the start of the pandemic the nation’s mental wellbeing has plummeted as health, employment and personal finance worries have strangled optimism.
Increased levels of depression, anxiety and loneliness are all on the rise, and employees are struggling to cope with social distancing measures, remote working, and childcare issues. The unseen financial impact of this worrying scenario needs to be considered by the politicians deciding whether to withdraw help such as the furlough scheme in the current circumstances.
In-depth analysis carried out for our Divided Together report points to the danger of ignoring workplace mental health issues. The research highlighted that 43 percent of all workers are worried about job security and this, combined with other factors, is having a detrimental impact on mental health.
Over 50 percent say they have seen their mental health deteriorate since the crisis began – a figure that increases to 55 percent for employees who are trying to juggle children and work responsibilities from home and 66 percent for furloughed parents.
Resources & Whitepapers
Treating employee wellbeing seriously
Many companies have already reacted to this growing issue and are positioning employee wellbeing at the top of their business priorities.
A third (35 percent) of HR leaders across sectors in the UK we spoke to say they had increased their wellbeing budget recently, and the same portion are planning to invest in the coming months. While the average wellbeing spend per head is now at £150 a year, there is a significant minority of organisations (14 percent) investing more than £2,000 per year, per person, in the wellbeing of their employees.
This is a repeat of a trend we have seen in previous testing times.
During the banking crisis of 2008, the number of businesses creating wellbeing strategies increased. In a recent study by the London School of Economics, improving wellbeing was found to boost employee productivity, satisfaction and retention within a company – all directly linked to business performance.
Our own research has found that 74% of HR leaders attribute greater physical health and wellbeing to a fall in absence. With the average UK company employing 150 people spending £120,000 a year on absence, this is an area business cannot afford to ignore. However, when combined with presenteeism – a growing issue where employees are working but not happy and struggling to concentrate – the cost to the UK economy is £81bn a year, according to Cambridge University.
Applying the company findings to the country
These figures suggest that businesses recognise that the mental wellbeing of their employees is directly related to their performance. Those that have found a way to improve employee wellbeing have seen better retention, satisfaction and performance. It is these learnings that should also have been considered when weighing up whether to continue support for UK employees after the initial furlough period ends. The new system didn’t have to be a continuation of furlough, but it needed to have wellbeing in mind.
From our research and countless other studies, investing in people goes far beyond investing in salaries. Yes, the jobs are important and mere job security for those nine million who have been on furlough will go a long way to easing mental stresses, but if this pandemic has taught us anything, it’s that as businesses, countries and a global community, our health is our wealth. Acknowledging and investing in our mental as well as fiscal rehabilitation will help secure a sustained recovery that is vital to rebuilding business for the future.
NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.
Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.
“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”
Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.
Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.
Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.
Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.
In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.
The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.
And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
