UK economy slows sharper than expected

March 27, 2009 by Admin · Leave a Comment

GDP contracted by 1.6pc in the fourth quarter of 2008, revised down from a contraction of 1.5pc, the Office for National Statistics reported. The quarterly fall of 1.6pc was the sharpest decline since 1980.

Construction output tumbled 4.9pc over the quarter, revised down from a fall of 1.1pc. The ONS said this was due to survey data replacing a forecast.

The decline is the biggest quarterly fall in construction output since the fourth quarter on 1980.

Output of the production industries fell 4.5pc compared with a fall of 1.8pc in the previous quarter, driven by the marked decline in manufacturing output.

Separate figures showed Britain’s current account deficit narrowed to £7.641bn in the fourth quarter of 2008 from an upwardly revised deficit of £8.162bn in the third quarter.

Sterling fell against the euro on Friday as it continued to suffer the fallout from Thursday’s weak retail sales figures. High street sales plunged by 1.9pc during February, taking annual growth down to just 0.4 percent, its weakest since 1995

Following that theme, John Lewis – the department store group whose sales are often seen as a barometer of British retail spending – reported on Friday sales dropped by 12.6pc in the week to March 21.

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Job Vacancies in Record Fall

February 20, 2009 by Admin · Leave a Comment

Job centre queue

The Recruitment and Employment Confederation (REC) said there had been a continued weakness in the labour market in recent weeks, with job vacancies falling at record levels.

Increasing numbers of workers being made redundant was coinciding with fewer new job opportunities becoming available.

There were sharp increases in the number of people looking for permanent and temporary work, a study found.

The report also noted a shift in bargaining power towards employers, with average salaries for successful candidates placed in permanent jobs falling for a fourth successive month in January.

The rate of decline in pay was the fastest since data collection started in 1997, while hourly pay rates for temporary staff was also down sharply.

Kevin Green, chief executive of the REC, said: “These figures continue to cause real concern and confirm that the labour market is continuing to contract, although the decline in permanent placements is less marked than in the previous month.

“The Government needs to breathe life into the jobs market, for example by harnessing the contribution of temporary work as a valuable mechanism for keeping people in employment.

“This means extending the employer incentives announced at last month’s jobs summit to take on and train temporary staff. It is also important that any steps to boost the jobs market are not undermined by potentially damaging legislation. In particular, the Government’s plans to introduce a tax on some temporary work from April must be delayed if we are to avoid even more jobs being lost at this critical time.”

Mike Stevens, of KPMG, which helped with the research, added: “Yet another month of desperate news on the UK employment front although there is a perceptible slowing in the rate of decline in permanent placements.

“Most employers are now looking at ways to cut cost to mitigate falling sales revenues. High on the list of costs, for what has largely become a service economy, is wages.”

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High-earning professionals lead dole queue

February 9, 2009 by Admin · Leave a Comment

High-earning professionals such as architects, quantity surveyors and lawyers are joing the dole queue at a faster rate than any other type of worker, new figures have revealed.

The number of tax advisers, commercial pilots and underwriters out of work and claiming benefits has also more than doubled in a year, according to the Office of National Statistics. Economists believe top earners who escaped the full brunt of previous recessions are among those hardest hit now.

“In the 1980s it was blue-collar unemployment; in the 1990s it was white collar unemployment,” said Graeme Leach, chief economist at the Institute of Directors. “In this recession we’re seeing something new: high-income unemployment.

“These are individuals with nice houses and two children in private schools who are suddenly seeing their standard of living plummet. This will be one of the hallmarks of this recession”.

More than 1.1m people were out of work and claiming benefits by the start of December – up from 787,000 a year earlier.

Middle-aged workers are among the biggest victims. There has been a 30% rise in unemployment among the over-fifties in the last quarter of 2008, while joblessness between 25 to 49-year-olds rose by 5%.

Following is the full list of occupations affected by the recession

Profession	Dec 07	Dec 08	%age increase
Quantity surveyors	100	590	490
Architects	150	810	440
Architectural technologists and town planning technicians	130	680	423.1
Managers in construction	785	4010	410.8
Chartered surveyors (not quantity surveyors)	230	850	269.6
Solicitors and lawyers, judges and coroners	345	1165	237.7
Heavy goods vehicle drivers	2645	8880	235.7
Water and sewerage plant operatives	70	225	221.4
Civil engineers	390	1205	209
Mobile machine drivers and operatives n.e.c.	1015	3110	206.4
Legal secretaries	420	1275	203.6
Taxation experts	25	75	200
Bricklayers, masons	4325	12600	191.3
Crane drivers	215	595	176.7
Town planners	55	150	172.7
Aircraft pilots and flight engineers	105	285	171.4
Insurance underwriters	120	325	170.8
Building and civil engineering technicians	195	525	169.2
Garage managers and proprietors	140	375	167.9
Carpenters and joiners	6685	17625	163.6
Scaffolders, stagers, riggers	1420	3715	161.6
Personnel and industrial relations officers	800	1940	142.5
Estimators, valuers and assessors	215	520	141.9
Property, housing and land managers	430	1010	134.9
Legal associate professionals	465	1085	133.3
Steel erectors	450	1050	133.3
Brokers	255	580	127.5
Plasterers	3425	7780	127.2
Buyers and purchasing officers	490	1070	118.4
Marketing and sales managers	3950	8585	117.3
Purchasing managers	215	465	116.3
Occupation unknown	2045	4405	115.4
Personal assistants and other secretaries	1590	3415	114.8
Financial institution managers	450	965	114.4
Transport and distribution managers	555	1190	114.4
Financial and accounting technicians	310	660	112.9
Quality assurance managers	235	500	112.8
Company secretaries	165	350	112.1
Construction operatives n.e.c.	3245	6785	109.1
Quarry workers and related operatives	125	260	108
Electricians, electrical fitters	3585	7445	107.7
Plumbers, heating and ventilating engineers	3625	7520	107.4
Conference and exhibition managers	275	570	107.3
Construction trades n.e.c.	2145	4445	107.2
Draughtspersons	520	1075	106.7
Plant and machine operatives n.e.c.	1260	2595	106
Finance and investment analysts/advisers	1025	2110	105.9
Financial managers and chartered secretaries	675	1375	103.7
Roofers, roof tilers and slaters	2080	4235	103.6
Legal professionals n.e.c.	180	365	102.8
Road construction operatives	1340	2710	102.2
Marketing associate professionals	955	1930	102.1
Customer care managers	595	1200	101.7
Merchandisers and window dressers	300	605	101.7
Floorers and wall tilers	1645	3310	101.2
Police officers (inspectors and above)	10	20	100
Public relations officers	265	530	100
Transport and distribution clerks	260	520	100
Air transport operatives	175	350	100
Assemblers (vehicles and metal goods)	565	1110	96.5
Glaziers, window fabricators and fitters	2020	3950	95.5
Credit controllers	340	660	94.1
Management accountants	385	745	93.5
Sales representatives	3135	6035	92.5
Welding trades	3010	5780	92
Advertising and public relations managers	490	940	91.8
Business and related associate professionals n.e.c.	540	1020	88.9
Air travel assistants	360	680	88.9
Office managers	1440	2710	88.2
Pipe fitters	570	1070	87.7
Chemical and related process operatives	280	525	87.5
Personnel, training and industrial relations managers	865	1615	86.7
Recycling and refuse disposal managers	75	140	86.7
Estate agents, auctioneers	555	1035	86.5
Production, works and maintenance managers	1605	2990	86.3
Public service associate professionals	65	120	84.6
Metal plate workers, shipwrights, riveters	340	625	83.8
Managers in mining and energy	60	110	83.3
Protective service associate professionals n.e.c.	30	55	83.3
Medical secretaries	145	265	82.8
Security managers	170	310	82.4
Lines repairers and cable jointers	225	410	82.2
Public service administrative professionals	565	1015	79.6
Management consultants, actuaries, economists and statisticians	635	1135	78.7
Quality assurance technicians	275	490	78.2
Metal machining setters and setter-operators	985	1755	78.2
Sales related occupations n.e.c.	1400	2490	77.9
Archivists and curators	200	355	77.5
Storage and warehouse managers	1340	2370	76.9
Information and communication technology managers	1665	2925	75.7
Chartered and certified accountants	590	1035	75.4
Leather and related trades	80	140	75
Production and process engineers	380	660	73.7
Accounts and wages clerks, book-keepers, other financial clerks	3775	6555	73.6
IT strategy and planning professionals	860	1490	73.3
Plastics process operatives	560	970	73.2
Paper and wood machine operatives	675	1165	72.6
Bookbinders and print finishers	265	455	71.7
Mechanical engineers	1285	2205	71.6
Dispensing opticians	35	60	71.4
Moulders, core makers, die casters	175	300	71.4
Vehicle spray painters	755	1290	70.9
Hotel and accommodation managers	420	715	70.2
Travel agency managers	50	85	70
Engineering technicians	605	1025	69.4
Telecommunications engineers	815	1380	69.3
Careers advisers and vocational guidance specialists	225	380	68.9
Design and development engineers	415	700	68.7
Metal working production and maintenance fitters	2030	3390	67
Printers	785	1310	66.9
Science and engineering technicians n.e.c.	135	225	66.7
Sheet metal workers	500	830	66
Customer care occupations	10045	16660	65.9
Process operatives n.e.c.	2475	4075	64.6
Rail construction and maintenance operatives	615	1010	64.2
Vehicle body builders and repairers	865	1420	64.2
Furniture makers, other craft woodworkers	555	910	64
Product, clothing and related designers	940	1540	63.8
Electrical engineers	510	825	61.8
Planning and quality control engineers	230	370	60.9
Upholsterers	300	480	60
Hand craft occupations n.e.c.	175	280	60
Van drivers	29975	47825	59.5
Journalists, newspaper and periodical editors	835	1330	59.3
Engineering professionals n.e.c.	605	960	58.7
Importers, exporters	120	190	58.3
Elementary sales occupations n.e.c.	180	285	58.3
Retail and wholesale managers	3005	4750	58.1
Call centre agents/operators	4550	7190	58
Stock control clerks	950	1500	57.9
Civil Service administrative officers and assistants	2465	3880	57.4
Rail transport operatives	175	275	57.1
Bus and coach drivers	1315	2065	57
Research and development managers	290	455	56.9
Refuse and salvage occupations	1385	2170	56.7
Telephone salespersons	1670	2615	56.6
Fork-lift truck drivers	12040	18795	56.1
NCOs and other ranks	225	350	55.6
Transport operatives n.e.c.	135	210	55.6
Occupational hygienists and safety officers (health and safety)	235	365	55.3
Social science researchers	300	465	55
Auto electricians	200	310	55
Prison service officers (below principal officer)	155	240	54.8
Electroplaters	175	270	54.3
Pharmaceutical dispensers	120	185	54.2
Tool makers, tool fitters and markers-out	250	385	54
Receptionists	6075	9330	53.6
Electrical/electronics engineers n.e.c.	925	1420	53.5
Agricultural and fishing trades n.e.c.	490	750	53.1
Roundsmen/women and van salespersons	85	130	52.9
Managers and proprietors in other services n.e.c.	695	1060	52.5
Pensions and insurance clerks	250	380	52
Hairdressing and beauty salon managers and proprietors	175	265	51.4
Assemblers and routine operatives n.e.c.	9255	13950	50.7
Directors and chief executives of major organisations	640	960	50
Officers in armed forces	80	120	50
Air traffic controllers	30	45	50
Train drivers	60	90	50
Vocational and industrial trainers and instructors	730	1095	50
Statutory examiners	30	45	50
Environmental health officers	70	105	50
Pest control officers	90	135	50
Agricultural machinery drivers	180	270	50
Metal working machine operatives	2075	3110	49.9
Debt, rent and other cash collectors	195	290	48.7
Bar staff	12465	18530	48.7
IT user support technicians	3245	4815	48.4
Graphic designers	3260	4835	48.3
Routine inspectors and testers	480	710	47.9
Undertakers and mortuary assistants	115	170	47.8
Painters and decorators	11165	16490	47.7
Registrars and senior administrators of educational establishments	85	125	47.1
Local government clerical officers and assistants	1195	1755	46.9
Electronics engineers	545	800	46.8
Police officers (sergeant and below)	280	410	46.4
Restaurant and catering managers	1135	1660	46.3
Building inspectors	65	95	46.2
Conservation and environmental protection officers	555	810	45.9
Ambulance staff (excluding paramedics)	120	175	45.8
Industrial cleaning process occupations	1355	1975	45.8
Rubber process operatives	55	80	45.5
Tyre, exhaust and windscreen fitters	1125	1635	45.3
Retail cashiers and check-out operators	6000	8705	45.1
Other goods handling and storage occupations n.e.c.	68475	99060	44.7
Managers in animal husbandry, forestry and fishing n.e.c.	45	65	44.4
Elementary office occupations n.e.c.	790	1135	43.7
Typists	195	280	43.6
Senior officials of special interest organisations	115	165	43.5
Filing and other records assistants/clerks	865	1240	43.4
Housekeepers and related occupations	660	945	43.2
General office assistants/clerks	52340	74895	43.1
Researchers n.e.c.	455	650	42.9
Paramedics	35	50	42.9
Fire service officers (leading fire officer and below)	175	250	42.9
Broadcasting associate professionals	665	950	42.9
School secretaries	70	100	42.9
Civil Service executive officers	620	885	42.7
TV, video and audio engineers	480	685	42.7
Travel agents	610	870	42.6
Sports and fitness occupations n.e.c.	400	570	42.5

Applicants by profession applying for dole.

Profession Dec 07 Dec 08 %age increase

Quantity surveyors 100 590 490

Architects 150 810 440

Architectural technologists and town planning technicians 130 680 423.1

Managers in construction 785 4010 410.8

Chartered surveyors (not quantity surveyors) 230 850 269.6

Solicitors and lawyers, judges and coroners 345 1165 237.7

Heavy goods vehicle drivers 2645 8880 235.7

Water and sewerage plant operatives 70 225 221.4

Civil engineers 390 1205 209

Mobile machine drivers and operatives n.e.c. 1015 3110 206.4

Legal secretaries 420 1275 203.6

Taxation experts 25 75 200

Bricklayers, masons 4325 12600 191.3

Crane drivers 215 595 176.7

Town planners 55 150 172.7

Aircraft pilots and flight engineers 105 285 171.4

Insurance underwriters 120 325 170.8

Building and civil engineering technicians 195 525 169.2

Garage managers and proprietors 140 375 167.9

Carpenters and joiners 6685 17625 163.6

Scaffolders, stagers, riggers 1420 3715 161.6

Personnel and industrial relations officers 800 1940 142.5

Estimators, valuers and assessors 215 520 141.9

Property, housing and land managers 430 1010 134.9

Legal associate professionals 465 1085 133.3

Steel erectors 450 1050 133.3

Brokers 255 580 127.5

Plasterers 3425 7780 127.2

Buyers and purchasing officers 490 1070 118.4

Marketing and sales managers 3950 8585 117.3

Purchasing managers 215 465 116.3

Occupation unknown 2045 4405 115.4

Personal assistants and other secretaries 1590 3415 114.8

Financial institution managers 450 965 114.4

Transport and distribution managers 555 1190 114.4

Financial and accounting technicians 310 660 112.9

Quality assurance managers 235 500 112.8

Company secretaries 165 350 112.1

Construction operatives n.e.c. 3245 6785 109.1

Quarry workers and related operatives 125 260 108

Electricians, electrical fitters 3585 7445 107.7

Plumbers, heating and ventilating engineers 3625 7520 107.4

Conference and exhibition managers 275 570 107.3

Construction trades n.e.c. 2145 4445 107.2

Draughtspersons 520 1075 106.7

Plant and machine operatives n.e.c. 1260 2595 106

Finance and investment analysts/advisers 1025 2110 105.9

Financial managers and chartered secretaries 675 1375 103.7

Roofers, roof tilers and slaters 2080 4235 103.6

Legal professionals n.e.c. 180 365 102.8

Road construction operatives 1340 2710 102.2

Marketing associate professionals 955 1930 102.1

Customer care managers 595 1200 101.7

Merchandisers and window dressers 300 605 101.7

Floorers and wall tilers 1645 3310 101.2

Police officers (inspectors and above) 10 20 100

Public relations officers 265 530 100

Transport and distribution clerks 260 520 100

Air transport operatives 175 350 100

Assemblers (vehicles and metal goods) 565 1110 96.5

Glaziers, window fabricators and fitters 2020 3950 95.5

Credit controllers 340 660 94.1

Management accountants 385 745 93.5

Sales representatives 3135 6035 92.5

Welding trades 3010 5780 92

Advertising and public relations managers 490 940 91.8

Business and related associate professionals n.e.c. 540 1020 88.9

Air travel assistants 360 680 88.9

Office managers 1440 2710 88.2

Pipe fitters 570 1070 87.7

Chemical and related process operatives 280 525 87.5

Personnel, training and industrial relations managers 865 1615 86.7

Recycling and refuse disposal managers 75 140 86.7

Estate agents, auctioneers 555 1035 86.5

Production, works and maintenance managers 1605 2990 86.3

Public service associate professionals 65 120 84.6

Metal plate workers, shipwrights, riveters 340 625 83.8

Managers in mining and energy 60 110 83.3

Protective service associate professionals n.e.c. 30 55 83.3

Medical secretaries 145 265 82.8

Security managers 170 310 82.4

Lines repairers and cable jointers 225 410 82.2

Public service administrative professionals 565 1015 79.6

Management consultants, actuaries, economists and statisticians 635 1135 78.7

Quality assurance technicians 275 490 78.2

Metal machining setters and setter-operators 985 1755 78.2

Sales related occupations n.e.c. 1400 2490 77.9

Archivists and curators 200 355 77.5

Storage and warehouse managers 1340 2370 76.9

Information and communication technology managers 1665 2925 75.7

Chartered and certified accountants 590 1035 75.4

Leather and related trades 80 140 75

Production and process engineers 380 660 73.7

Accounts and wages clerks, book-keepers, other financial clerks 3775 6555 73.6

IT strategy and planning professionals 860 1490 73.3

Plastics process operatives 560 970 73.2

Paper and wood machine operatives 675 1165 72.6

Bookbinders and print finishers 265 455 71.7

Mechanical engineers 1285 2205 71.6

Dispensing opticians 35 60 71.4

Moulders, core makers, die casters 175 300 71.4

Vehicle spray painters 755 1290 70.9

Hotel and accommodation managers 420 715 70.2

Travel agency managers 50 85 70

Engineering technicians 605 1025 69.4

Telecommunications engineers 815 1380 69.3

Careers advisers and vocational guidance specialists 225 380 68.9

Design and development engineers 415 700 68.7

Metal working production and maintenance fitters 2030 3390 67

Printers 785 1310 66.9

Science and engineering technicians n.e.c. 135 225 66.7

Sheet metal workers 500 830 66

Customer care occupations 10045 16660 65.9

Process operatives n.e.c. 2475 4075 64.6

Rail construction and maintenance operatives 615 1010 64.2

Vehicle body builders and repairers 865 1420 64.2

Furniture makers, other craft woodworkers 555 910 64

Product, clothing and related designers 940 1540 63.8

Electrical engineers 510 825 61.8

Planning and quality control engineers 230 370 60.9

Upholsterers 300 480 60

Hand craft occupations n.e.c. 175 280 60

Van drivers 29975 47825 59.5

Journalists, newspaper and periodical editors 835 1330 59.3

Engineering professionals n.e.c. 605 960 58.7

Importers, exporters 120 190 58.3

Elementary sales occupations n.e.c. 180 285 58.3

Retail and wholesale managers 3005 4750 58.1

Call centre agents/operators 4550 7190 58

Stock control clerks 950 1500 57.9

Civil Service administrative officers and assistants 2465 3880 57.4

Rail transport operatives 175 275 57.1

Bus and coach drivers 1315 2065 57

Research and development managers 290 455 56.9

Refuse and salvage occupations 1385 2170 56.7

Telephone salespersons 1670 2615 56.6

Fork-lift truck drivers 12040 18795 56.1

NCOs and other ranks 225 350 55.6

Transport operatives n.e.c. 135 210 55.6

Occupational hygienists and safety officers (health and safety) 235 365 55.3

Social science researchers 300 465 55

Auto electricians 200 310 55

Prison service officers (below principal officer) 155 240 54.8

Electroplaters 175 270 54.3

Pharmaceutical dispensers 120 185 54.2

Tool makers, tool fitters and markers-out 250 385 54

Receptionists 6075 9330 53.6

Electrical/electronics engineers n.e.c. 925 1420 53.5

Agricultural and fishing trades n.e.c. 490 750 53.1

Roundsmen/women and van salespersons 85 130 52.9

Managers and proprietors in other services n.e.c. 695 1060 52.5

Pensions and insurance clerks 250 380 52

Hairdressing and beauty salon managers and proprietors 175 265 51.4

Assemblers and routine operatives n.e.c. 9255 13950 50.7

Directors and chief executives of major organisations 640 960 50

Officers in armed forces 80 120 50

Air traffic controllers 30 45 50

Train drivers 60 90 50

Vocational and industrial trainers and instructors 730 1095 50

Statutory examiners 30 45 50

Environmental health officers 70 105 50

Pest control officers 90 135 50

Agricultural machinery drivers 180 270 50

Metal working machine operatives 2075 3110 49.9

Debt, rent and other cash collectors 195 290 48.7

Bar staff 12465 18530 48.7

IT user support technicians 3245 4815 48.4

Graphic designers 3260 4835 48.3

Routine inspectors and testers 480 710 47.9

Undertakers and mortuary assistants 115 170 47.8

Painters and decorators 11165 16490 47.7

Registrars and senior administrators of educational establishments 85 125 47.1

Local government clerical officers and assistants 1195 1755 46.9

Electronics engineers 545 800 46.8

Police officers (sergeant and below) 280 410 46.4

Restaurant and catering managers 1135 1660 46.3

Building inspectors 65 95 46.2

Conservation and environmental protection officers 555 810 45.9

Ambulance staff (excluding paramedics) 120 175 45.8

Industrial cleaning process occupations 1355 1975 45.8

Rubber process operatives 55 80 45.5

Tyre, exhaust and windscreen fitters 1125 1635 45.3

Retail cashiers and check-out operators 6000 8705 45.1

Other goods handling and storage occupations n.e.c. 68475 99060 44.7

Managers in animal husbandry, forestry and fishing n.e.c. 45 65 44.4

Elementary office occupations n.e.c. 790 1135 43.7

Typists 195 280 43.6

Senior officials of special interest organisations 115 165 43.5

Filing and other records assistants/clerks 865 1240 43.4

Housekeepers and related occupations 660 945 43.2

General office assistants/clerks 52340 74895 43.1

Researchers n.e.c. 455 650 42.9

Paramedics 35 50 42.9

Fire service officers (leading fire officer and below) 175 250 42.9

Broadcasting associate professionals 665 950 42.9

School secretaries 70 100 42.9

Civil Service executive officers 620 885 42.7

TV, video and audio engineers 480 685 42.7

Travel agents 610 870 42.6

Sports and fitness occupations n.e.c. 400 570 42.5

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250% jump in bust companies

February 6, 2009 by Admin · Leave a Comment

The number of large companies going bust leapt by 250% in the last three months of 2008 as the economic downturn took its toll.

Consumers also felt the pain asa the number of bankruptcies last year soared to the highest level since records began nearly 50 years ago.

The total number of businesses going bust, which covers administrations and liquidations, rose by more than 50 per cent as increasing numbers of firms struggled to access finance or secure insurance. But experts warned that the figures were set to rise higher in the coming year.

Malcolm Shierson, Partner at Grant Thornton’s Recovery and Reorganisation practice,aid “These numbers are bad, but they are going to get progressively worse as business and consumer confidence continues to fall.”
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“Companies across all sectors will struggle when they need to refinance their debt as lenders rein back on corporate lending. On top of this, the arteries of business are being clogged up as credit insurers cut back on the provision of cover for suppliers and contractors.”

Some 2,018 businesses entered into administration — the insolvency scheme usually used by larger companies — between October and December last year, up from 575 in the final quarter of 2007, figures from the Insolvency Service show.

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Sacked bankers need help finding work, says minister

November 15, 2008 by Admin · Leave a Comment

Job centres are under strain to help £75,000 per year bankers find work as Britain was hit by 20,000 job losses in the finance sector in one week, a Government minister said yesterday.

Tony McNulty, the employment minister, decided to speak out after Citigroup and Royal Bank of Scotland joined a string of financial firms making thousands of job cuts as the economic downturn takes its toll on the City.

Unemployment is expected to reach 2 Million by Christmas, and Mr McNulty explained that “We do need to make sure Jobcentre Plus is geared up for your £75,000 a year banker as well as other people and we do need that with fleetness of foot and flexibility.”

Unlike the previous recessions, such as the one in the 1980’s when manufacturing was the worst sector affected, this economic downturn is hitting financial workers hard.

Citigroup said it had already cut 12,900 jobs in the past year and had identified a further 9,100 to go in the coming months. RBS, which is in line for a £20 Billion bail-out from tax payers, is expected to offlay 3,000 jobs.

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Five thousand jobs cut in a day

November 14, 2008 by Admin · Leave a Comment

Vicky Redwood

Yesterday more than 5,000 job losses were announced as an economist warned that unemployment would hit record levels in the worst downturn for 25 years.

According to Vicky Redwood of Capital Economics, the number claiming unemployment benefit would jump by 40,000 when official figures were announced today, taking levels close to the million mark. She went on to say that it is merely the tip of the iceberg and that overall unemployment figures would reach 3.3 million by 2010, more than the previous high of 3.278 million recorded in 1984.

She also said that there is usually a lag of about six months before the labour market reacts to this kind of change in the economy: “We have not seen the full effect of the recent slowdown in the economy, let alone the full force of the recession.”

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Business leaders welcome change

November 7, 2008 by Admin · Leave a Comment

A cautious welcome was felt among business leaders yesterday following the Moneytary Policy Committee’s 1.5 percentage point cut in interest rates. However, they echoed the Government’s view that the savings must be passed on to the consumer.

Andy Bond, CEO of ASDA, the UK’s second largest supermarket, said that the cut should go “some way” towards restoring consumer confidence in the run-up to Christmas. He said it was “essential” that banks and building societies do not keep the saving for themselves but pass it on to their customers.

Property companies also welcomed the move.

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Carmakers bring back 3-day week

October 22, 2008 by Admin · Leave a Comment

A group of leading carmakers in Britain have annouced that drastic measures are needed to deal with the slump in demand. Nissan became the latest to slash production yesterday when it announced that it will completely stop further manufacture of its Micra and Note models at its Sunderland factory for two weeks.

When the production line is restarted it will operate until December on a three-day week reminiscent of the factory stoppages in 1974.

About 800 employees work on these models in the UK’s biggest car-making site. Bosses have denied that there will be job losses and insisted that pay will not be cut. However, the reduced operations will result in a 10% cut in production, similar to that announced by Honda, which has reduced its production of the Civic model at its Swindon factory.

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Recession on the way warns Bank of England

October 14, 2008 by Admin · Leave a Comment

Andrew Sentance, member of the Bank of England’s policy committee has warned that the UK faces further severe downturns in the economy as he set the stage for further rate cuts.

A fall in GDP for the second quarter running is becoming certain, he said at a Market News International Seminar in London, and the balance of risks is shifting towards severe recession by the end of the year.

Mr Sentance’s observation comes on the back of a report by the Centre for Economics and Business Research stating that the City would be set back 10 years with a net loss of 62,000 jobs taking employment back to the same level as 1998.

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Treasury throws £50Bn lifeline at banks

October 8, 2008 by Admin · Leave a Comment

This morning, Britains banks will be saved by the treasury. So deep is the financial crisis that Alistair Darling has stepped in and provided a lifeline to the city in the form of a £50bn rescue plan.

Other measures the Treasury will introduce are a guarantee for Britain’s £2,000bn of retail and corporate savings. Meanwhile banks are under continued pressure to raise further capital as the cash shortage bites.

Sandy Chen at Panmure Gordon warned: “Government bailouts will only prolong the process of structural readjustment, which includes further 20% falls in US and UK house prices”

The Government will take stakes in RBS, HBOS, Barclays, Lloyds TSB and HSBC. The size of the stakes will be determined by each of the banks capital strength. RBS are in line for the biggest injection as the weakest in the sector.

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