New wave of job cuts on the way
It has been revealed that advertising giant WPP and software company Sage are set to announce thousands of additional job cuts over the next few days. Many experts now fear that the employment market is entering the next phase of the economic downturn which could see hundreds of thousands of job losses announced over the coming days and weeks.
After the initial reaction to the economic downturn we saw a number of job cuts announced but now companies have had more time to review their balance sheets and profitability, it would appear that a new wave of job cuts is on the way. This will not only place more pressure on the UK government, with income tax down dramatically over the last 12 months, but increase the pressure on the social security budget which has ballooned and will continue to do so for some time yet.
Unless we see a short-term turnaround in the UK economy, and employment market, many experts fear that the middle classes, rich businesspeople and lucrative businesses in the UK will bear the brunt of the funding shortfall. Additional taxes, red tape and other fund-raising exercises appear inevitable at some stage.
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