UK Omicron Staffing Issues Could Lead to $48B in Output Losses

Omicron staff shortages in the U.K., including illnesses as well as mandatory isolation, might end up cutting $48 billion in output in January and February, Bloomberg reported Sunday (Jan. 9), citing The Sunday Times.

The loss will be around 8.8% of the gross domestic product (GDP). The numbers are based on government planning assumptions of a 25% absenteeism rate.

Even a slightly better rate of 8% absenteeism would be three times the seasonal average and would come out to a £10.2 billion ($13.9 billion) loss in output — 2.6% of the GDP.

The omicron variant has been reported to be more contagious than previous variants. Because of that, many workers have had to self-isolate and hospitals are filling up yet again.

The Centre for Economics and Business Research said the U.K.’s losses in output could be made up during the rest of the year.

PYMNTS wrote in December that the U.K. had seen less sales during Christmas weekend than usual because of the omicron variant, a 45% decrease.

Read more: UK Retail Foot Traffic Down 45% from 2019 Boxing Day

In Central London, reports said one in 20 people had been infected with the new variant. On Boxing Day, the main shopping area Oxford Street saw less traffic, and some stores like Marks and Spencer, John Lewis and Next were closed.

PYMNTS also reported that omicron is also surging still in the U.S., making lawmakers consider weighing their options on more stimulus plans to help out businesses ravaged by the virus. The package could come with billions of dollars in aid to restaurants.

See also: US Lawmakers Eye New COVID-19 Stimulus Funding for Businesses

There were over 1 million COVID-19 cases reported in the U.S. on Jan. 3, which set an all-time record — though that included a backlog of tests over the New Year’s weekend.

President Joe Biden has said Americans should be concerned but not alarmed by omicron.

While advocating vaccinations and booster shots, Biden said it was unlikely that vaccinated people would become ill, although the unvaccinated would have more of a reason to be afraid.