Sharp rise in redundancies expected due to financial crisis
A survey carried out by the Chartered Institute of Personnel and Development (CIPD) of 721 organisations has resulted in some alarming news.
The CIPD said its survey found that a sharp rise in redundancies is expected by employers as a result of the current financial crisis.
A quarter of the organisations questioned said they had prepared fresh plans for redundancies, with the majority planning to cut jobs as early as next year, with older workers bearing the brunt of the job losses.
The survey discovered that employers had been delaying job losses, hoping that the economy would improve but with the UK on the brink of recession, this now seems unavoidable.
According to CIPD chief economist, John Philpott, interest rates should be lowered further to boost business confidence.
Earlier this month, the Bank of England, as part of a co-ordinated move with both the Federal Reserve and European Central Bank (ECB), cut interest rates by half a percentage point.
Earlier this week, the US Federal Reserve again cut interest rates 0.5% to 1%. Many analysts believe that the Bank of England and European Central Bank will follow suit next week with a further 0.5% cut.
In the meantime, Oxford Economics is predicting that the credit crisis could result in 194,000 job losses in London, over the next two years.
The influential economic consultancy expects that London job numbers will fall from 4.71 million in 2008 to just over 4.51 million in 2010.
It is expected that financial services will be the worst hit, while the business support services industry is expected to decline next year, as a knock-on effect, and other sectors, particularly retail, are at risk.
However, no job cuts are expected in the public sector.
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