More than half of employers 'looking to make redundancies'

Posted on 30 July 2008

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Many permanent jobs could go in the coming months as half of employers look to down-size, it is claimed.

According to the latest quarterly National Business Survey from professional services firm KPMG, more than half of UK employers are likely to announce redundancies in the wake of the credit crunch.

The study indicates 53 per cent of senior executives plan to reduce their headcount, while 52 per cent intend to freeze recruitment.

Malcolm Edge, regional chairman for KPMG, says businesses are suffering from a "perfect storm" of rising inflation, low consumer confidence and lack of credit availability.

He added: "With six out of ten businesses looking to cut costs, staff redundancies may seem like the obvious, albeit painful, solution.

"The widespread redundancy programmes we have already seen in the financial services and house-building sectors may therefore just be a small sign of things to come."

Yesterday saw Deloitte and Touche economic advisor Roger Bootle call for a drop in interest rates from five to 3.5 per cent by the end of 2009 in order to kick-start the economy.

Category: General News

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