Job cuts on the way in public and private sector
A survey by the Chartered Institute of Personnel and Development has given an insight into what we can expect in the first half of 2010. The revelation that overall one in four employers is planning job cuts is alarming in itself but this figure rises to one in three for the public sector. It seems that despite the fact that the UK economy has "moved out of recession" we will see unemployment in the UK rise markedly in 2010.
Those employers who confirmed they are looking towards reducing staff numbers have indicated they will cut their staff by an average of 6.2% in the first quarter of 2010 which compares to a reduction of 3.8% in the final quarter of 2009. There would also appear to be pressure on salaries with minimal or no increases expected in the short to medium term as companies look to rein in their spending and reduce their cost base.
We are now starting to see the fact that unemployment in the UK will severely lag any economic recovery and unemployment is likely to rise in the foreseeable future. This is not the "dream scenario" which the government had hoped for as we move towards the general election.
Share this..
Related stories
U.K. economy in danger of dropping out of the world's top 10
The UK economy is on the verge of dropping out of the world's top 10 due to a mixture of reduced natural resources and the emergence of economies such as Brazil and Russia. The UK economy was the fourth largest in 2005 and has since been overtaken by China, France and Italy and is currently hanging on to seventh place. However, it looks as though the UK could fall down as far as 11th place by 2015...
Read MoreMatalan announces impressive Christmas trade
January 2010 Matalan, the out-of-town discount retailer, has today issued a statement regarding Christmas trade showing an increase of 13.7% in sales. This comes at a time when founder John Hargreaves is looking to offload the business for £1.5 billion and would appear to be in the final throes of agreeing a sale. While Matalan has often attracted controversial headlines it is worth rememberin...
Read MoreCBI raises doubts about UK economic recovery
The latest quarterly survey from the CBI has highlighted the fact that many UK banks and building societies believe that the recent increase in lending will collapse in the first quarter of 2010. While many people are becoming more and more confident about the UK economy, due to the fact there has been an increase in lending over the last six months, many banks and building societies believe that...
Read MoreBank of England cautious on UK economy
The Bank of England has revised various forecasts regarding the UK economy amid concerns that the exit from recession will be slower and longer than expected. While the Bank of England last week suspended the quantitative easing program, the bank's governor Mervyn King has today suggested that the program may return and it is too soon to end the program completely. So where does this leave the UK...
Read MoreWill the threat of inflation stifle economic recovery?
While in general inflation is something which many people look to avoid, in moderation it is a vital element of any economy. However, the December inflation figure of 2.9% is still causing concern within political and financial circles because the Bank of England will need to address this problem sooner rather than later, something which could stifle economic recovery in the short term. The pro...
Read More