Economic slowdown 'could spark job losses'

News Article - 30 June 2008
Category:

High numbers of job losses could result from the recent economic downturn in Britain, according to a new report.

Figures from Capital Economics indicate that the credit crunch is hitting the economy hard, with employers planning to make thousands of people redundant to reduce costs.

Accounting software packages can help businesses to cut costs and manage finances more effectively.

Research by consultancy Capital Economics found that as many as 440,000 people could lose their jobs over the next two years, raising the unemployment rate in Britain from 5.3 per cent to eight per cent, the Daily Mail reports.

According to the study, the rate of unemployment could reach a level last seen during the end of the nineties recession, with the number of unemployed in Britain reaching as many as 2.5 million.

The report also suggests that Britain could be facing a recession and this could push up unemployment rates even higher, potentially topping ten per cent.

Writing for the Telegraph, Roger Bootle, managing director of Capital Economics and economic adviser to Deloitte, stated: "I expect that by the end of next year, overall employment will have fallen by about 500,000 and unemployment will have risen by 800,000."

A poll of bosses by Hay Group and the Centre for Economics and Business Research indicated that employers could scrap as many as 350,000 jobs during 2008-09 and corporate profits could plummet by up to £900 million over the year.

Article keywords:

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »