Job sites and hospitality leaders forecast flood of redundancies as furlough scheme winds up

Naomi Ackerman
·3-min read
 (NIGEL HOWARD ©)
(NIGEL HOWARD ©)

Hospitality industry leaders and jobs sites today forecast a new flood of applications will follow the wind up of the furlough scheme this weekend. 

Caterer.com, the industry’s largest job board, has already seen its Hospitality Redeployment Hub – which helps  workers find roles in other sectors - receive more than 2.1 million applications since March. 

Company director, Neil Pattison, said: "With the end of the furlough scheme on Friday and further lockdown restrictions being introduced across the country, we are expecting to see site visits and applications via the Redeployment Hub continuing to grow."

International jobs site Indeed said on Friday that the closure of the historic support scheme this weekend "threatens a cliff edge of job losses and has triggered a surge in jobseeking”.  

<p>Leaders welcomed support to come for businesses under the JSS, but said many redundancies are still to come </p>PA

Leaders welcomed support to come for businesses under the JSS, but said many redundancies are still to come

PA

The site said that it has seen more than 670,000 Britons upload CVs or update their profiles and begin to search for new roles in the final weeks of the scheme.

Indeed’s UK economist, Jack Kennedy, said:  "As the scheme ends, thousands of employers and their staff are facing up to a stark reality - many of these jobs simply won’t be viable without the furlough’s support.

“The spike in the number of people uploading a CV, or updating an existing one, on Indeed in October hints at just how steep the cliff edge in job losses could be. Two thirds of a million people kicked off their job search in the space of just a few weeks."

The Government's less generous Job Support Scheme is set to replace furlough.

But analysts at stockbroker Peel Hunt forecast "the number of job losses in the sector will continue to increase if trading restrictions [such as Tier 2 and curfew] are not eased".

<p>Sadiq Khan today called on the Government to offer additional support to London businesses post-furlough</p>Daniel Hambury

Sadiq Khan today called on the Government to offer additional support to London businesses post-furlough

Daniel Hambury

Restaurateur Jeff Galvin, behind Michelin starred Galvin La Chapelle in the City, said the London restaurant industry is expecting to take another hit.

Mr Galvin, who said he recently received more than 200 applications for one job at his restaurant group, said:  "We have been lucky, but I know quite a few other people in the industry looking to make household redundancies, and even a few closures, and it's sad.

"It's really, really tough on people. And I hope where people can, they can get jobs.  

"I just hope that people don't leave the industry. We have such great talent in the industry in the city."

<p>Restaurateur Jeff Galvin is behind Michelin starred Galvin La Chapelle in the City</p>Steve Joyce

Restaurateur Jeff Galvin is behind Michelin starred Galvin La Chapelle in the City

Steve Joyce

Emma McClarkin, Chief Executive of the British Beer & Pub Association, said that the "sector has been devastated by the crisis and sadly jobs are still being lost" despite the JSS having provided much-needed intervention.  

Greg Parmley, chair of live music industry body LIVE, also said he predicts "the speed of redundancies will increase" in the culture sector in the coming weeks.  

A total of 1,734 employers notified the government of plans to cut 20 or more posts in September, according to FOI data released to the BBC this week.

Large companies in the process of making redundancies include Lloyds Bank, Shell, Virgin Atlantic, and the UK's largest hospitality company, Whitbread.

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