CEBR study reveals gloomy outlook for business services sector

| June 22, 2009 | 0 Comments

There is bad news today with regard to UK jobs after the Centre for Economics and Business Research (CEBR) warned that 334,000 jobs will be axed across the business services sector by 2011.

The study suggests that the credit crunch and recession will result in more than half of the jobs that were created in the sector during the past five years will be eliminated in the next three years.

The prediction is in stark contrast to the 20% increase in employment and the 15% increase in output experienced by the sector between 2003 and 2008.

According to the CEBR, the industry worst hit will be advertising with around 15,000 jobs being axed in the period after experiencing falls in revenue of 3.9% last year.

The business services sector has been one of the best-performing components of the UK economy in the last few years, making up for more than 30% of all new jobs created and 5% annual economic growth since Labour came to power over a decade ago.

The sector also consist of industries such as property management, research and development, IT services, the legal sector, accountancy and management consultancy.

Arek Ohanissian, one of the report’s authors, comments: “Though most sectors in the UK economy will suffer from the recession, the dramatic reversal of fortunes for the business services sector from strong performance to significant losses would have been hard to imagine even at the onset of the financial crisis.”

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