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 by executive recruitment firm Kendrick Rose.
Up to 44% of people surveyed this week said they no longer have any income from work, while 20% have seen a reduction in income and 3% are receiving government support.
The survey found just 33% of Jersey workers were working at home on full pay, or had not experienced a change in income. Meanwhile, 12% of people had seen a reduction in pay or hours, 10% had been made redundant, 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.
Kendrick Rose MD Shelley Kendrick (pictured below) said: “The economic aspects of the pandemic have a massive impact on everyone working in Jersey. Every sector is affected by some degree of job losses or reduction in pay. Our survey shows business owners and the self-employed are potentially the worst hit.”
Survey questions
The survey, 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.
A recent survey in the UK by HR body the CIPD found that 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 said they have been furloughed may work for UK firms or they may have come to an informal arrangement with their employer.”
Work prospects
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.
UK comparisons
The figures correspond with UK data. Research by the British Chambers 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 added: “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.”