How coronavirus has impacted the economy in West Sussex

A new report shedding light on the impact of coronavirus on the economy in West Sussex paints a mixed picture.

The monthly snapshot report was published by West Sussex County Council on September 23, just a day after new restrictions – including the rule of six and a 10pm curfew for pubs and restaurants – were introduced.

It found unemployment to be on the rise, with the number of people claiming Universal Credit for the principle reason of being out of work having increased at a greater pace than either regionally or nationally.

In August, 27,710 people aged over 16 in the county claimed the benefit citing lack of work as their main reason – a rise of 5.5 per cent from the previous month.

This was most acute in Crawley and Arun – which both saw more than 5,000 claimants.

Overall, the numbers of people claiming Universal Credit in West Sussex has increased 143 per cent since January 2020 – from 24,762 to 60,128 in August.

However analysis by the Institute for Employment Studies shows that there was a ‘significant increase’ in new job vacancies being posted online in West Sussex in the month to August 9, compared to the previous month.

This suggests a slight upturn in hiring, which would be in line with national trends.

Both Arun and Chichester saw an almost 40 per cent increase in vacancies compared to the month before, the report found.

The majority of businesses in West Sussex (81 per cent) have adapted their business model or service as a result of the pandemic, according to the results The Tourism South East COVID-19 Business Impact Survey.

However, 13 per cent of those who responded felt that they were under threat of permanent closure as a result of the pandemic, and half were unsure, the survey found.

The report also noted that, since June, there have been more business incorporations than there had been in the previous year – with the majority of these in the Business Services, Travel, Personal and Leisure, and Construction industries.

This increase may suggest that individuals who are out of work or remain furloughed are exploring other employment options, according to the report.

While there were far fewer business closures than anticipated for this time of year, a large number of businesses currently remain dormant – 7,128 in total.

There were just 321 companies dissolved/in liquidation in West Sussex between March 23 and August 31, compared with 2,336 during the same period last year.