In the UK creative sector, over 1.75 million full time equivalent jobs are supported, across marketing, advertising, and the events industry. With half of previously furloughed staff in the UK now returned to work, either part-time or full time, this puts more than 800,000 jobs at risk of redundancy in coming months
Current research shows that 46% of companies previously employing in-house marketing teams are now planning to outsource their marketing needs, rather than retain staff currently on furlough. The sector employs more than 1.75 million staff across marketing, advertising and event sectors. With consumer confidence at an all time low, and businesses stalled since lockdown, British businesses are struggling to regain pre-Covid business levels.
In both B2B and B2C sectors, approximately 89% of marketers admit to reviewing and delaying their market spends for the remainder of 2020 and into 2021, with over 80% having paused a new product or service launch for the foreseeable future. As a result, with revenues diminished, end users are cutting back on ‘in-house’ skills and ‘out-sourcing’ as the new normal, on a ‘when required’ basis. With agency staff also be moving from furlough with the consequences of diminished requirement in-agency, ending up on the jobs market with little hope of re-employment, the real fear is the UK will create a ‘talent mountain’.
The consumer-facing marketing sector has been hardest hit with 44% of all staff being made redundant and 57% of marketers have had their roles scaled back in some form or another, whereas the B2B sector has seen 25% redundancies as well as 64% of roles changing in some way.
“We work with over 30,000 creatives in the UK. As consumer and business confidence continues to suffer B2B and B2C marketers are being hit equally hard, with 69% in both sectors reporting a slackening of demand for their brands products and services. The potential outcome will be a talent-mountain, which may see marketers exiting the industry for good.”