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Cost-of-living and its effects

This blog looks at the challenges of the cost-of-living crisis, including redundancies and how the People Hub can help you.

People in the UK have had a financially tough few years, with Covid-19 and the Russia-Ukraine war. As a society, we are learning to become more and more resilient in the face of challenge and uncertainty. So far, 2023 has been a year of strikes, food price increases and questions as to whether the UK will have a recession. The cost-of-living crisis has impacted both individuals and businesses. Some businesses are struggling to keep on top of energy bills and price increases and find they have to make the hard decision of closing or creating redundancies. Individuals are also facing the increased cost of food, energy and fuel while wages are struggling to keep up.

Over the last 18 months, some organisations in Cornwall have had difficult decisions to make around redundancies and closures, with echoes of the effects being outlined in local news outlets. Later in this article we will talk about how the People Hub can help those facing these difficult times. Below is a graph showing the redundancy rate per 1,000 in the South-West and England. We can see that the redundancy rate, as an average, is steadily rising for England. Yet the South-West has one of the lowest rates of redundancies out of England’s regions. Even so, what the graph shows us is that it’s volatile and easily changes.

Source: ONS, FEB 2023 Note: Estimates for Cornwall are based on a small sample size. This may result in less precise estimates, which should be used with caution.

When looking at the UK as a whole (below graph), we can see that redundancy levels are steadily increasing while we stay in economic uncertainty across the UK.

Source: ONS, Feb 2023

Redundancies are not the only issue that UK workers are facing. The National Institute of Economic and Social Research has reported that while the UK is likely to avoid a ‘technical recession’ in 2023, GDP growth is set to remain close to zero with personal disposable income already having contracted for four consecutive quarters meaning it will feel like a recession for many. The labour market currently remains strong but NIESR forecast a slow rise in unemployment in the coming year, peaking at around 4.7% in the third quarter of 2024.

Source: NIESR, 2023

What does this mean for you?

Possibly you’re not feeling secure in your job role or unhappy with your wage because of cost-of-living increases. It’s a fact that many in work are still living in poverty.

People Hub can help you, whatever situation you’re in. We have dedicated Connectors that can help you if you’re in work and looking to secure a new role with better pay, facing redundancy, or if you’re unemployed and looking for work.

Over the last 12 months we have helped people facing redundancy in Cornwall. Many had not changed job roles in decades and so it was a scary prospect going back into the labour market. One of our participants had a complete change in job role from librarian to café manager and absolutely loved the move. We helped by funding their qualification to make that move as well coaching them with interview skills and improved confidence.

In Cornwall, we know that our average wages are below national and regional average (see table below). Some of this is down to the dependency that our economy has on tourism and hospitality, traditionally low paid roles, and some of this is because we have a lower percentage of people with high skilled qualifications in Cornwall. The People Hub is here to help with gaining better qualifications and improving your labour market status. Furthermore, since Covid-19, many businesses are becoming more flexible and adapting to the way in which we work better. This means there are more remote working opportunities available, highlighting the possibility to access higher paying roles in Cornwall.

How to get in touch with People Hub:

Email: hello@peoplehub.info

Tel: 0333 015 0699

We look forward to hearing from you!