St Helens Chamber survey shows impact of pandemic on jobs

The survey, for the fourth quarter of 2020, shows that, after signs of recovery were reported in the previous three months, this had begun to slow towards the end of the year.

Eighty companies, representing 1,968 employees answered the survey, with 26 per cent of respondents from the manufacturing sector and 74 per cent the services sector.

Workforce reductions have been reported by a third of respondents, with staff increases in just three per cent of businesses who responded. This is below quarter two figures of five per cent.

The Chamber says these "drastic figures" show that employment figures remain "nowhere near a normal level".

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No responding manufacturing firms increased their workforce in the last quarter of 2020, with a third saying they are likely to decrease it in the coming quarter.

Meanwhile, the majority of services firms feel that their employment level is likely to remain constant, but 14 per cent expect to increase their workforce and also 14 per cent expect to decrease staff numbers.

The majority of roles being recruited for are in the semi- or unskilled and skilled manual/technical areas.

The number of firms now saying they are operating at full capacity has risen to 28 per cent, from 24 per cent in quarter three and 14 per cent in quarter two.

The Chamber added the majority of St Helens firms continue to hold their own on the sales-front, but more than a third report that both domestic and international sales, and future orders, have decreased again.

This is not a universal picture however, as 22 per cent of respondents are reporting increases in this quarter and 18 per cent say that future orders have increased.

The Chamber said cashflow remains the most significant problem businesses are facing.

The uncertainty and drop in demand that they have experienced is unsurprisingly impacting on investment levels, with nearly half of all firms responding saying that their investment in plant, equipment and training will decrease over the next year.

While 2020 has caused a drastic fall in business overall, there is a minority of businesses increasing domestic and international sales, and recruiting locally. And 54 per cent of firms continue to plan for growth again over the next 12 months in a sign of resilience among St Helens firms.

Tracy Mawson

Tracy Mawson, chief executive at St Helens Chamber, said: “This is the third Economic Survey the Chamber has conducted since the onset of the Coronavirus pandemic and these latest results highlight in no uncertain terms that local firms are still a long way from business as usual.

“Though the vaccine rollout provides real optimism, with a further sustained period of tougher lockdown restrictions to tackle the new variant of Covid-19, St Helens Chamber is clear that far more and broader national and local efforts to boost business and consumer confidence is needed to help firms create and retain jobs and underpin our local economy.”

For advice and assistance please call us on 01744 742444 or email growthhub@sthelenschamber.com