Through our business liaison we are hearing that many firms, including in the construction sector and in professional services, were able to keep many of their employees over recent months because they had a pipeline of work to complete. But as new orders have declined, this pipeline is drying up.
If it is not replaced soon, hours worked in these businesses will decline further, just at the same time that other parts of the economy are coming back to life. Some firms have also used recent months to reconsider their business models.