0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Coronavirus: Report Highlights Worst Affected Sectors

Written by: Keith Tully

Published: 6th April 2020

A newly published report from the Institute for Fiscal Studies (IFS) has highlighted the sectors of the economy and the types of people who’ve been most directly impacted by the coronavirus outbreak so far.

The nationwide lockdown introduced to try to stop the spread of COVID-19 has already had a huge impact on some areas of the economy, including non-food and non-pharmaceutical retailers, the passenger transport sector, providers of accommodation and food, and the travel industry.

Meanwhile, the childcare sector has been very badly hit, as have the personal care and domestic services industries, and the arts and leisure sector, with some exceptions.

According to the IFS, younger workers are being disproportionately impacted economically by the early effects of the coronavirus crisis, with employees aged under 25 said to be 2.5 times more likely to be working in a sector directly affected by the shut down that’s happened in recent weeks.

However, for some younger people, the impact of losing their income will be softened somewhat because they live at home with parents whose jobs have not yet been affected or at least haven’t been affected as badly. 

Low earners are believed to be seven times more likely to work in a sector that’s been halted by the virus and the national response to it than people who can be categorised as high earners, the IFS has estimated.

The crisis is also being revealed to have a gender-based dimension, with women across the UK roughly one third more likely than their male counterparts to work in a sector that’s already been shut down as a result of the COVID-19 situation.

Across the economy, around one in seven people who were in work prior to the crisis were employed in a sector that’s now been shut down as a direct consequence of the virus outbreak and the resulting lockdown.

Last week, it was revealed that hundreds of thousands of British companies only have enough cash available to last them a few months, with fears growing about the potential for very large numbers of insolvencies as the coronavirus crisis unfolds.

Keith Tully

Author
Keith Tully
Partner

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
Processing...
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Desling with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
78
Number of UK Offices
30000
Directors Helped
70+
Licensed Insolvency Practitioners