Britain in recession 'within months'

[mercurial]

Bosses predict 550 jobs will be lost EVERY day

FTSE falls 2% in first hour of trading
Housebuilder Persimmon cuts 1,100 jobs
Britain is on the verge of a recession and the number of permanent job vacancies is falling, two reports warn today.

The British Chambers of Commerce describes the outlook as 'grim' and warns that a recession could start within months.

It says it has uncovered evidence of a 'menacing deterioration' in the economic outlook. Another report, from the accountants KPMG, shows that the number of permanent job vacancies fell in June for the first time in five years.

The bleak predictions came as the FTSE 100 Index fell more than 140 points in the first hour of trading in a knock-on effect after a sharp overnight drop on Wall Street.

Speculation two U.S. mortgage providers might have to raise more capital and make more writedowns triggered the American sell-off.

In the UK, Bradford and Bingley shares continued to plummet - down 25 per cent today, reaching 31p at one point which is a new record low.

The deepening economic crisis has left the Treasury facing a £7.5billion black hole in its Budget next year, according to a respected research body.

The figures, collated by the National Institute of Economic and Social Research, will increase anxiety among Labour MPs that they are heading towards a general election with the public finances in turmoil.

Such a deficit - if proved to be that large - will mean that Chancellor Alistair Darling will either have to put up taxes, cut spending or borrow more.

The black hole is the equivalent of cutting 57,000 teaching jobs, cancelling two giant aircraft carriers ordered by the MoD and closing five hospitals.

Full article here

 

[Moederloos]

While 550 (job s per day) sounds like a lot - and no doubt will affect those people horribly - it is not a lot really.
550 per day = 16000 or so a month, or 180 000 or so a year. In a working population of what, 30-40 million?

 

[Pixie22]

While 550 (job s per day) sounds like a lot - and no doubt will affect those people horribly - it is not a lot really.
550 per day = 16000 or so a month, or 180 000 or so a year. In a working population of what, 30-40 million?

60+ mill. I agree

 

[eltherza]

While 550 (job s per day) sounds like a lot - and no doubt will affect those people horribly - it is not a lot really.
550 per day = 16000 or so a month, or 180 000 or so a year. In a working population of what, 30-40 million?

Comes to about 0.6% (of 30 million people) losing their jobs. But there are actually about 60 million people so 0.3%.

 

[Moederloos]

Comes to about 0.6% (of 30 million people) losing their jobs. But there are actually about 60 million people so 0.3%.

I sucked 30 million "working population" from a population of 60 million.
Was a very quick "guess".