Job losses to keep rising

Another 320,000 jobs could be lost in the next three months, it has been predicted.


Another 320,000 jobs could be lost in the next three months, it has been predicted.

Another 320,000 jobs could be lost in the next three months, it has been predicted.

Research from business advisers BDO Stoy Hayward finds conditions in the labour market remain bleak, with the group’s employment index falling from 94.2 in January to 91.7 last month.

Despite gloomy predictions for unemployment, the survey also reveals both output and optimism indices have seen slight improvements.

Peter Hemington, partner at BDO Stoy Hayward, says firms still expect the economy to contract in the immediate future, but are adjusting business models to reduce their costs, with new employment strategies being one way of doing this.

However, the expert adds: ‘It’s still too early to say if business confidence has hit rock bottom and we’ve already seen a number of false dawns, but this month’s modest increases are encouraging.’

A report from manufacturers’ organisation EEF, published today, suggests the industry could see 140,000 job losses over this year, as orders hit record lows and growth forecasts for 2009-10 are revised downwards.

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