Recent events are leading to predictions of the start of an economic recovery. News of a breakthrough in vaccine testing by Pfizer and BioNTech and Joe Biden’s win in the US election caused stock markets around the world to rise. The vaccine trial has shown a 90% efficacy and is being considered a huge step forward in the fight against Coronavirus and helping create new jobs. Production forecasts for the vaccine have also been brought forward, which is another positive sign. However, caution is still being called for by some as initial testing numbers remain low.
News of the vaccine was met positively across most of the world’s markets. Rolls-Royce was one of the biggest winners, seeing a 45% bounce in share prices. This is on the hope that a return to normal for the tourism industry will see greater demand for new jet engines and new jobs. IAG, the parent company of British Airways saw a similar jump (30%). Other sectors boosted by the news of the possible start of an economic recovery included the business services sector. Conference organiser Informa and catering company Compass both saw 20% increases. Meanwhile, Whitbread and Intercontinental Hotels saw 16% and 14% increases, respectively.
Not a great day for all
However, the possible start of an economic recovery was not great news for all industries. Some sectors have seen demand and sales increase significantly because of Coronavirus. These include the online food delivery and retail sectors, which have recorded record profits during the lockdown. Online grocers Ocado saw business boom during Coronavirus. New jobs were recently announced by the Post Office, including 33,000 new seasonal positions. However, it reported a 11% drop in share prices upon the news. Furthermore, the hugely popular takeaway operator Just Eat has seen a 7% drop. DIY chain Kingfisher shares fell 6%, while Peloton, the online exercise bike company, fell 16%. Other casualties of the possible return to normal are expected to include Zoom and Amazon.
What of the future?
Despite the UK economy experiencing a record fall earlier in the year, there are other signs this could be the start of an economic recovery. The UK government reported a record number of new businesses being created in the UK in June of this year. This was during the height of the first lockdown in the UK, but before the new lockdown measures. This rise has continued, with various reasons likely behind this increase in the self-employed. These include how easy it has become thanks to the likes of website building programs and sales sites such as Amazon.
Other reasons include the need by many people to make a living and the market holes left by larger companies going under. All of these are combining to create opportunities for a whole new generation of entrepreneurship. Such individuals are now being seen in areas including freelance work and the selling of Covid-specific products. Other incentives for being your own boss at the moment include the various UK government tax schemes and loans being offered.
Pick a business, any business
The effects of the pandemic and perhaps a general realisation that life really is precious have seen a rise in the self-employed in various sectors. Self-employed, online food delivery is becoming hugely popular and easier to set up. Likewise, online delivery companies, such as those providing small quantities of differing beauty products are also appearing. Many online companies are also able to begin operations relatively cheaply, helping entrepreneurship to thrive and creating new jobs.
Some previously less popular roles are also seeing a rise in popularity. Online education has appeared as a real need for many people. Whilst demand is likely to fall once things return to normal, the sector is still expected to grow significantly from its pre-Covid-19 level. Likewise, online physical training and lifestyle coaching have also seen greater interest. This includes everything from math and piano teachers to singing coaches and cooking lessons.
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