The COVID-19 pandemic has had a profound impact on the labour market. Substantial reduction in economic activity and the consequent drop in demand for labour, alongside social distancing rules, have pushed employers to adapt their working practices.

This report focuses on how employers have been reacting to the pandemic during the period to the end of June 2020. Measures included freezing recruitment, furloughing staff, redundancies, adjusting pay, and in particular, the unprecedented shift to homeworking, without which the economic and employment impacts of COVID-19 would have been much more severe. 

The report shows there is a high probability that there will be no return to business-as-usual post-pandemic. Policy makers and employers must therefore reconsider the interventions and working practices needed to best support and sustain the workforce.

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