The Bank of England’s chief economist sent out a warning this week that “collective anxiety” could be as damaging to both our wellbeing and the economy as Covid itself. Haldane argued that good economic news is being under-reported, the media focusing on the more dramatic statistics. The press sensationalising stories? Surely not! He likened the undue pessimism, caution and panic to Chicken Licken screaming in a blind panic that the sky is falling down. Certainly a vivid image. But is he right? Is our fear holding the economy back?
I have always been a ‘can do’ person, never accepting that things can’t improve or be improved. Definitely a glass half-full sort of guy. Of course, I haven’t been immune to the effects from the fallout from the pandemic and neither has the recruitment industry. I think anyone would be lying if they said that Covid-19 hadn’t affected them in some way, left them feeling low at some point. It has undoubtedly had a devastating effect on so many. But I strongly feel that now is the time for optimism, for pulling together and striving forwards.
Bank of England advisors are now saying that they expect GDP to be around 3-4% under its pre-Covid levels by the end of the third quarter. “In other words,” says Haldane, “the economy has already recovered just under 90% of its earlier losses”. According to the Bank of England, consumer spending has also been higher than expected, with UK consumption rising by an average of around 2% per week since May and consumer spending now at pre-Covid levels, a whole year earlier than previously forecast. This is all great news but no-one is talking about it! Yes, there are scary statistics, the unemployment rate is set to rise with the end of furlough and we’re heading into a winter where no-one can predict what might happen, but what we all need is a boost, not more scaremongering.
What we don’t want is for this fear for the future to become a self-fulfilling prophecy. “Planning for the worst is important, but needs to be accompanied by hope for the best” - Haldane’s words but an ethos that we all share here at Wave. We can all play our part in the economic recovery of our country and the recruitment industry will have a huge role in that. Let’s ensure we are equipped to deal with the worst this virus throws at us but are striving towards the future with optimism.
