Two thirds of workers in Jersey are facing job losses or a reduction in income as a result of the Coronavirus pandemic according to a new survey.
Up to 44% of people surveyed by Kendrick Rose said they no longer had any income from work, while 20% of people have had a reduction in income and 3% are receiving government support.
A survey by Kendrick Rose, an executive recruitment firm, found just 33% of Jersey workers were working at home on full pay, or had not experienced a change in income. 12% of people had seen a reduction in pay or hours, 10% had been made redundant, and 10% furloughed, 11% have had to close their businesses, and 24% have seen their work stop.
The self-employed and business owners appear to have been particularly badly affected. 67% of business owners and 74% of self-employed people surveyed claim they are no longer receiving any pay. In comparison, 69% of people in finance are working at home on full pay.
Shelley Kendrick, Managing Director, Kendrick Rose, said: “Just as Coronavirus can affect anyone, the economic aspects of the pandemic have a massive impact on everyone working in Jersey too. 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.”
The survey, which was conducted over a 24-hour period at the start of this week, asked over 100 people in Jersey questions about how their work status had changed since the Coronavirus pandemic hit the Island.
In the UK, a recent survey by the CIPD, an organisation representing HR professionals, found over 50% of UK employers intended to furlough staff, while 25% were planning to make people redundant.
In the Kendrick Rose survey, of those who said they have been furloughed, 60% work in retail or hospitality.
Shelley said: “Furloughing staff is not part of Jersey employment law, so the small number of people we have surveyed who have said they have been furloughed may work for UK firms or they may have come to an informal arrangement with their employer.”
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% are motivated by a desire for greater job security, while 9% would like to move because they are unhappy how their employer has treated them during the Coronavirus pandemic.
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.
The figures correspond with UK data. Research by the British Chamber of Commerce, found 18% of UK businesses had closed temporarily, while a report by the Corporate Finance Network for accountants indicated that one fifth of small to medium UK businesses could run out of cash and collapse within a month.
Shelley said: “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. 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.”