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Job crunch Britain: how have you been affected?

November 10, 2008

Net job creation in the UK has almost stopped as employers feel pessimistic about prospects for the economy, the latest quarterly Labour Market Outlook survey by KPMG and the Chartered Institute of Personnel and Development (CIPD) has found.

The balance between the proportion of employers looking to increase staff levels over the next three months and those expecting to cut has fallen from +41 in autumn 2007 to +2 in autumn 2008 – the lowest figure recorded since the survey began in spring 2004, according to the Payroll and Human Resources Newsletter.

Of the 721 employers surveyed, 83 per cent anticipated that Britain’s economic condition would further deteriorate this autumn and only one percent said they thought there would be an improvement.Respondents felt more optimistic about their own organisation though, with only 25 per cent believing that things would get worse.

Even though inflation is running at a 16-year high of 5.2 percent, staff pay excluding bonuses is seen increasing on average by just 3.5 per cent when the next pay review is due, while the expected average increase including bonuses has risen from 3.9 per cent to 4 per cent.

With official UK unemployment data for October due out on Wednesday, CIPD Chief Economist John Philpott sees a gloomy winter ahead:  “With pay increases at best modest for those still in work, the harsh chill of recession will make this the toughest winter for UK households for almost two decades.”

Tell us what impact the downturn has had on you and your business. How has staff morale been affected?

Comments

Recession and job losses are a result of free market. We are now a service country and wealthy is only created by Manufacturing. We employed 250 in manufacturing , now only 100 left and we are just surviving and its only a matter of time when the entire manufacturing will disappear. Its still not too late to introduce a duty on all imports and revive our manufacturing also a levy £1.per garment to bring by Air which is contributing to Air polution.
Alan Greenspan has also admitted that free market was a mistake. All our wealth has been transfered to Middle East in high Oil cost and all manufacturing cost to China and India. I cannot forsee any new jobs being created and it is nonsense to fund retraing , retraing in what field and where are the jobs.We have to start manufacturing and the Economy will immediately revive in 6 months and people will start paying taxes and national insurance and start spending and the housing market will improve.

Posted by I A | Report as abusive
 

UK govt & BoE was lazy to solve issues in UK. The 1.5% cut was needed back in August as Nothern Rock rocked and B&B started showing soar eye. They waited far too long to get the things going. Now banks refuse to give loans to employed let only unemployed. My bank even refused the mortgage leave that they were suppose to offer as part of the mortgage deal. Both PM & BoE kept the public unaware of the issues and the depth of the problem. They say 2 million is out of job – well my real estimation will be 9-10 million as UK govt has no idea about problems

Posted by ag | Report as abusive
 

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