Winter Will Bring 'Avalanche of Job Losses'

Submitted by SadInAmerica on Thu, 09/18/2008 - 7:18pm.

A grim cocktail of rising unemployment, plunging job vacancies and below-inflation pay rises have been signalled in official figures.  Workers were warned to brace themselves for an 'avalanche of job losses' in what is the worst deterioration in the labour market for at least a decade.

The figures, from the Office for National Statistics, reveal the impact of the current economic turmoil.

The numbers claiming Jobseeker's Allowance jumped at its fastest pace for 16 years, up 32,500 in August to bring the total to 904,900.

The figure has now been rising for the last seven consecutive months.

In a further blow, unemployment rose 81,000 in the three months to July to a total of 1.7million, its highest level for nearly a decade.

Several housebuilders have laid off up to 40 per cent of their workers and job cuts in the City over the next year could hit more than 100,000.

The figures also show how hard it will be for those made redundant to find more work.

With large mortgages, soaring household bills, debts and few savings, many will not survive for long without a regular income.

The number of vacancies dropped 56,900 in the three months to August, the second biggest fall on record, according to the ONS.

John Philpott, chief economist at the Chartered Institute of Personnel and Development, said: 'These bad jobs figures will not be the last.

'This greatly increases the chances of what earlier in the year we warned might be an autumn and winter avalanche of redundancies.'

A separate report from the Bank of England said many firms have introduced 'recruitment freezes'.

The average pay rise for workers in the public and private sector, excluding bonuses, was 3.7 per cent, compared to inflation of 4.7 per cent.

Becky Barrows - September 18, 2008 - source DailyMail UK

Tag this page!
Submitted by SadInAmerica on Thu, 09/18/2008 - 7:18pm.