Connect with us

Hi, what are you looking for?

Investing

Home working at highest level as businesses adapt to new way of working

working from home

Fewer people are travelling into the office with remote working now at its most widespread since the spring, according to official figures.

About 36 per cent of working adults operated exclusively from home in the past seven days, the Office for National Statistics said. This was up from 34 per cent the week before and was the highest level since June.

The government is advising people to work from home whenever possible during the third national lockdown. The figures suggest that businesses and their employees are modifying their behaviour more than they did during the November lockdown.

The proportion of workers on furlough also edged up slightly from 17 per cent to 18 per cent as businesses, particularly those in the hardest-hit sectors, were forced to close or scale back their operations.

The ONS said that 22 per cent of businesses had paused trading and did not intend to restart in the next two weeks. Another 3 per cent had paused trading but intended to restart in the next two weeks.

Although the lockdown is putting pressure on the economy, businesses appear to be weathering the latest storm better than the spring lockdown. Many companies have adapted to social distancing guidelines or have changed their business models to better meet demand. As a result, fewer businesses have been forced to close. The number of companies that said they had been trading for more than the past two weeks rose from 67 per cent to 70 per cent.

The Bank of England expects the economy to shrink by 4 per cent in the first quarter of the year. Although the country will be pushed back into contraction, the downturn is unlikely to be as severe as the 19 per cent fall registered during the first lockdown.

In its latest Monetary Policy Report, the Bank said: “The overall economic impact of lockdown is not expected to be as severe as it was in April. The proportion of businesses that have paused trading is broadly similar to June, by which time GDP had recovered over a third of the way from its April trough.”

The number of workers on furlough is also about half of what it was during the spring, when the figure peaked at almost nine million in May. This reflects the fact that more companies have remained open, but also that some businesses have already made redundancies in the intervening period.

Consumer spending has deteriorated less sharply than it did in March, when it fell to 50 per cent of its pre-pandemic average level. Credit and debit card data collected from the Bank of England show that spending increased by three percentage points in the week to 28 January. Spending is now 32 per cent below its February average.

People increased their spending on groceries and work-related purchases. They also spent more on social activities, which usually relates to travelling and eating out. Although both activities are banned under the lockdown, the uplift could reflect the fact that many of the businesses in this sector have adapted to offer new goods and services in ways that are compliant with the rules. However, spending on social activities is still 51 per cent below its pre-Covid level.

Read more:
Home working at highest level as businesses adapt to new way of working

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

The number of people on furlough fell below two million towards the end of June as the economic recovery gathered pace, official figures show....

Investing

Amazon signalled last night that its breakneck growth will slow over the coming months as people emerge from pandemic restrictions. Net sales at the...

Investing

Speculation that the chancellor will delay his budget until next year is mounting after he instructed the spending watchdog to publish new forecasts without...

Investing

A further 30 black students starting at Cambridge University will have their tuition and living costs covered thanks to a scholarship scheme started by...

Investing

The recent heatwave has seen England’s only tea plantation grow a bumper crop that matches yields from the finest bushes in India and Kenya....

Economy

The muggy heat-swaddling Tokyo may be a forerunner of Olympic life to come, experts say, urging a rethink to make the world’s oldest sporting...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!