The U.K. Faces the Biggest Slump in Employment in Past 5 Years

A decade ago from today, U.K. faced devastating unemployment that has come back in a bigger and broader aspect in the last five years.

According to the data revealed by the Office for National Statistics, Britain’s unemployment rate has risen to 5.1% from October to December 2020. Supposedly, it would have been more in 2021 without the coronavirus furlough scheme.

If you are a resident of Great Britain and worried about the future of your job, this article can help you find some essential details. Let’s get started with an overview.

Britain’s Unemployment Status – A Rundown Sketch

In 2016, a Reuter’s poll of economists made a median forecast on Britain’s unemployment, which is absolutely in line with the condition the U.K. is facing in 2021.

However, the Government is trying to do the best in their part by securing the jobs of one in five employees. Right now, it is suppressing the jobless rate by administering the Job Retention Scheme; otherwise, the rate might have skyrocketed.

As reported by the ONS in separate data, the payrolls in British companies have increased by 83,000 in January than December, which is also the highest since January 2015 and overall the second monthly upscale.

However, another report on tax data shows that the headcount of employees on direct company payrolls has fallen by 726,000 after February 2020. The report further highlighted that the majority of the workers are aged below 25. The ONS has also confirmed that the occupational vacancies in the U.K. this year are 26% less than the previous one.

The banks in Britain expect the unemployment rate to cascade by 8% within mid-2021, once the furlough scheme ends. Thus, finance minister Rishi Sunak announced an immediate extension of the Government’s job support in distinct geographical domains hardest hit by the lockdown.

However, unemployment can affect you anytime, without prior notice. So, effective money management is essential to keep up with the essential expenses. Find out a few bits of advice on managing your finances in the next subhead of this blog.

 The Best Money-Management Plan for Unemployed

With no occupation and regular income, you may find yourself in poor mental and physical condition. Maintaining your economic state during unemployment is the key to physical and emotional wellbeing.

If you’ve recently lost your job, then the right ideas and pragmatic approach can help you sustain within budget without sacrificing. Let’s hear read about the best money-management plan during unemployment.

• No money in hand? Opt-in for a payday loan

Your first problem during unemployment will be a financial crisis when you need a certain amount of money on an immediate basis to meet up the regular living cost. You can avail of payday loans for unemployed from direct lenders to manage the quick expenses. This payday loan is an excellent option for the unemployed, where a small amount of money is offered as a loan that you have to repay only after securing a job.

• Too many expenses? Monitor now!

Your job status may have changed for bad, but your expenses do not alter overnight. You still have to bear the costs even with reduced or no income. That is why it is essential to look through your expenses to identify the necessary versus unnecessary expenditure.

Monitoring your daily and monthly outlay gives you control over every pound and a sense of peace. You can make use of a budgeting tool or an excel worksheet to keep track of your spending, savings, debts, and credit score.

How to separate essential and nonessential expenses?

• Make a list of your earnings (if any)
• Note down your balance in savings account and emergency fund
• Jot down everything on which you spend money usually, each month
• Segregate these expenditure into essential and nonessential categories
• Chalk out the edges where you can make major and minor trimmings

Sometimes, you might also have to make hard choices about which bills to pay — such as paying your electricity bills and rents more critically than paying monthly credit card instalments. These are some of the decisions to be made before your financial status hits a hard point.

Money-conscious people also rely on the 50/30/20 rule to keep track of their monthly expenses. Let’s find out more about this rule –

50-30-20 Rule Of expenditure

• 50% of your money must be spent on necessities like groceries, rent, utilities, and gas
• 30% must be spent on the extras and the things you want like entertainment, subscriptions, etc.
• 20% of the money you can keep for savings and investments. You can also implement this plan if you have sufficient pounds to sustain one year.

• The next thing will be to look for new income sources –

Sustaining in a first-world country like the U.K. with no secure job and monthly income will be indeed difficult. So, it will be better for you to explore alternative income streams like part-time jobs, side gigs, temp work, etc.

In this rotating sphere of economy, you may find the side hustles more profitable than salaried jobs. And, who knows, you may see a bright future with any of those!

Find here some of the unique and profitable income channels –

• Gig Economy – In this modern workplace, you can search for independent contractor position, freelance work options, and flexible gigs from sites like Upwork, Freelancers, FlexJobs, and Guru.
• Part-time employment – If you are recently unemployed, part-time job facilities can give you a sense of stability in terms of income. Also, the income stream will help to bridge the gap between your income and expense.
• Temp agencies – You can also consider temp agencies as a good option for part-time income opportunity. These agencies will hire you as seasonal staff for companies, which need employees for a temporary replacement or when their resources are on leave.

Managing your finances will not be that difficult as it sounds. Only you have to be a little more cautious about your expenses and control your desires to increase savings. Further, you can be part of temporary vocational opportunities to match up your expenses with the income.

With these ideas in mind, you can easily sustain through Britain’s recession. But don’t forget to upgrade your resume in the meanwhile by attending several online courses. This will increase your chance of employment, and you can secure a job even before the recession is over!