Tuesday, August 16, 2011

Unemployment ticking time-bomb in UK

Source: Press TV

A new survey has revealed that more jobs will be lost in the third quarter across the UK amid a sharp fall in confidence in the country's manufacturing sector.

The quarterly survey of more than 1,000 employers from the Chartered Institute of Personnel and Development (CIPD) and accountants KPMG showed that Britain's economy would shed more jobs in the third quarter as companies' hiring is unlikely to counterbalance public sector cuts, British media reported.

"Increasing uncertainty about growth prospects in both the UK and global economies is now affecting hiring intentions; particularly in those industries such as manufacturing that stand to lose most in the event of a global slowdown," said Gerwyn Davies, public policy adviser at the CIPD.

"This will concern the government as it attempts to rebalance the economy towards exports and investment," he added.

The CIPD/KPMG net employment index turned negative again, falling to -1 from +3 recorded for the past three months.

"Long-term prospects are even worse, with the twelve-month employment index falling to -6 from +2 last quarter," the CIPD said.

However, the near- and long-term index are both still above levels hit in the survey published in February.

Official unemployment numbers are due on Wednesday and economists expect a rise of 20,000 in claimant numbers for July and a stable unemployment rate of 7.7 percent in the three months to June.

Meanwhile, fears are growing that the North-South jobs divide will widen in the next year as it was revealed confidence in the manufacturing sector has fallen sharply.

Research reveals that more private sector employers in the North of the UK now intend to shed staff, while those in the South are still recruiting.

Analysis suggests that businesses in the North will look to get rid of jobs both over the next three months and 12 months - a reversal from earlier this year.

Fears have been raised that an unemployment time-bomb is ticking in Britain.

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