Covid absences hit high in December

An estimated 3 per cent of the workforce was signed off in late December and a fifth of companies reported elevated cancellations amid the surge within the Omicron coronavirus variant.

Newest figures from the Workplace for Nationwide Statistics present that absences associated to Covid-19 hit a 19-month excessive on the finish of final yr, and it continued to weigh on companies within the first week of January when it was close to its peak.

In response to the ONS, 21 per cent of corporations suffered an increase in cancellations, with 44 per cent of companies within the hospitality sector affected.

Restaurant reservations dropped final week when the most recent wave of coronavirus instances was close to its peak, in accordance with OpenTable, the net reserving web site. The variety of seated diners within the week to January 10 fell to 88 per cent of the extent within the equal week in 2020.

The autumn was extra extreme in Manchester, the place reservations declined by greater than the common for the time of yr, than it was in London, the place there was a lower-than-average drop.

Eleven per cent of companies reported having no money reserves, whereas 7 per cent stated they’d low confidence or no confidence that they might survive the subsequent three months. One other 40 per cent stated they’d a most of three months’ value of money reserves. The determine rose to 54 per cent for eating places, inns and different companies offering meals or lodging. Companies within the sector additionally reported the bottom confidence of survival within the subsequent three months, with virtually a fifth reporting that they’d low or no confidence they might survive.

Martin Beck, of the EY Merchandise Membership, stated that the impression of Omicron could be mirrored in development. “Some shoppers seem to have in the reduction of on social consumption whereas the numerous variety of infections can have disrupted the power of some corporations to function. So it’s trying extra possible that GDP fell in December.

“Nevertheless, a lift to the well being sector in December from an increase in Covid-19 testing and vaccinations, and proof shoppers shifting spending from social actions to items means the impression on output … is more likely to be a lot smaller than earlier waves.”