Wednesday, December 31, 2008
Crunch will cost UK 600,000 jobs during 2009
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Financial Meltdown
When combined with those job losses that have already occurred since the start of the recession in mid-2008, the UK will likely suffer the the loss of about 750,000 jobs by the end of 2009.
The CIPD warned that this would be equivalent to the total net rise in employment in the preceding three years.
CIPD chief economist John Philpott said: "Assuming the economy bottoms out in the second half of 2009, job losses are likely to continue into 2010, in all probability taking the final toll of lost jobs to around 1 million."
Philpott added: "Our current expectation, based on available survey evidence and employer soundings, is that the number of redundancies will jump sharply in the early months of 2009, once employers take stock of the economic outlook.
"The period between New Year and Easter is likely to be the worst for redundancies since 1991.
"Similarly, the CIPD’s baseline forecast is that by the end of 2009 the number of people unemployed and actively seeking work will have increased to 2.8 million, 1 million above the autumn 2008 figure."
The institute's annual Barometer Report, published today (29 December), also predicts poor pay prospects over the year ahead, with more than half of the 2,604 employees quizzed expecting to receive either less than they did last year or no pay rise at all.
Overall, 28 per cent of employees believe that they will not receive a pay increase in 2009, while 26 per cent predict that they will receive a lower pay rise than the one they got in 2008.
A further 2 per cent actually expect a pay cut during the year.
CIPD reward adviser Charles Cotton said: "With job cuts seemingly lurking around every corner and trading conditions tight, employees are realistic about their pay prospects for the year ahead. Against this backdrop, employers will need to work hard to find new ways to motivate their employees to perform."
Article from : FTAdviser
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The CIPD warned that this would be equivalent to the total net rise in employment in the preceding three years.
CIPD chief economist John Philpott said: "Assuming the economy bottoms out in the second half of 2009, job losses are likely to continue into 2010, in all probability taking the final toll of lost jobs to around 1 million."
Philpott added: "Our current expectation, based on available survey evidence and employer soundings, is that the number of redundancies will jump sharply in the early months of 2009, once employers take stock of the economic outlook.
"The period between New Year and Easter is likely to be the worst for redundancies since 1991.
"Similarly, the CIPD’s baseline forecast is that by the end of 2009 the number of people unemployed and actively seeking work will have increased to 2.8 million, 1 million above the autumn 2008 figure."
The institute's annual Barometer Report, published today (29 December), also predicts poor pay prospects over the year ahead, with more than half of the 2,604 employees quizzed expecting to receive either less than they did last year or no pay rise at all.
Overall, 28 per cent of employees believe that they will not receive a pay increase in 2009, while 26 per cent predict that they will receive a lower pay rise than the one they got in 2008.
A further 2 per cent actually expect a pay cut during the year.
CIPD reward adviser Charles Cotton said: "With job cuts seemingly lurking around every corner and trading conditions tight, employees are realistic about their pay prospects for the year ahead. Against this backdrop, employers will need to work hard to find new ways to motivate their employees to perform."
Article from : FTAdviser
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