WARNING: NI job crisis looming
Last updated 27th Oct 2020
Belfast Chamber of Commerce is warning almost half of jobs in the city centre could be lost in the next six months.
New figures showed 45% think they will have to make further redundancies, while 42% reported sales and turnover are down by more than half.
That’s one of the key findings of a shock new survey on the impact of Covid-19 on businesses.
Simon Hamilton, the Chief Executive, has warned that there is a looming job crisis and if the Executive does not step in and provide more support it could have an unemployment crisis on its hands.
He said: “We have known since the start of the Coronavirus pandemic that we are in the midst of an interlinked public health and economic emergency.
“This latest survey of Belfast Chamber members shows the scale of the jobs crisis we are facing and just how serious the situation could get for many workers in the city.
“Our members are reporting really serious issues including a collapse in sales of an excess of 50% for four out of ten businesses.
“This is then having a knock-on effect on their cash flow situation.”
According to the survey over half of businesses (52%) have less than three months cash reserves in place and 18% reported they have none.
“These aren’t just statistics. They are our family, our friends, our neighbours who have lost their jobs and now face a very uncertain future.
Meanwhile, fewer than half of businesses in Belfast (49%) are open as normal with 16% closed completely due to recent restrictions.
He added: “It is little wonder that business confidence is so low with almost two thirds of Belfast Chamber members telling us that they are somewhat concerned or very concerned about the very future of their businesses.
“The most troubling conclusion from our survey is the very clear jobs crisis that is looming.”
Of the 100 members polled 47% businesses said they have already had to make redundancies as a result of the impact of COVID-19 and the restrictions imposed on their ability to trade.
While, 29% of respondents said they believe their employment needs in just six months will be more than a quatre lower than their pre-pandemic levels.
Mr Hamilton added: “Nearly half of Belfast Chambers have already made redundancies because of the impact that COVID-19 and the range of restrictions placed upon them by the Executive to stop the spread of the virus.
“Across the members surveyed, that adds up to several hundred people who are now out of work.
“These aren’t just statistics. They are our family, our friends, our neighbours who have lost their jobs and now face a very uncertain future.
“Close to one third of Belfast businesses believe that their employee needs will be more than 25% lower than they were before the pandemic in just six months’ time.
“The pandemic combined with the lockdowns imposed on our members is resulting in a real-life jobs crisis in our city.
“This survey serves to underscore the urgent need for the Executive to chart a different course than lockdown after lockdown and closing whole sectors of our economy over and over again.
“That strategy isn’t killing off the virus, it’s killing off jobs.
“Belfast Chamber welcomes the recent public statements by the First Minister and deputy First Minister where they have both outlined a desire to find a way to live with the virus and better balance the protection of lives and livelihoods.
“Businesses in our city and across the region are more than willing to play their part in suppressing the spread of COVID19 and we would encourage Ministers to work much more closely with industry.
“Without a proper partnership approach and a brand-new strategy, we are genuinely worried about how many businesses will close in the coming months and how many people will lose their jobs.
“The Executive still has an opportunity to act and avert a devastating jobs crisis”.