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Employers predict redundancy rise | Employers predict redundancy rise |
(about 4 hours later) | |
Employers predict a sharp rise in redundancies brought on by the current financial crisis. | |
A Chartered Institute of Personnel and Development survey says older workers will bear the brunt of job losses. | A Chartered Institute of Personnel and Development survey says older workers will bear the brunt of job losses. |
The survey also says many employers had been hanging on, hoping the economy would pick up so they could avoid making redundancies. | The survey also says many employers had been hanging on, hoping the economy would pick up so they could avoid making redundancies. |
CIPD chief economist John Philpott said interest rates should be cut further to boost business confidence. | |
"The onset of recession is already putting jobs at risk but many more are in the firing line as employers consider their next move in a fast deteriorating situation," Mr Philpott said. | |
'Nightmare scenario' | |
He called for the Bank of England to cut interest rates further "to prevent a nightmare scenario for jobs". | |
Earlier this month, the central bank cut interest rates to 4.5% from 5% in a co-ordinated global move and will meet next week to decide whether to cut the cost of borrowing again. | |
The turmoil surrounding the banking world and subsequent turbulence in the financial markets is making for an uncertain time Rachael Joy, GFK NOP How to negotiate during redundancy | |
The recent economic downturn has led many employers to draw up contingency plans for job losses, the survey suggests. | |
A quarter of the 721 organisations surveyed said they had prepared fresh plans for redundancies, with most planning to cut any jobs by the end of January. | |
Older workers appear to be particularly at risk. | |
One in five employers said they would take advantage of the rules which allow them to make workers aged over 65 redundant, without having to provide a business reason. | |
Confidence ebbs | |
The financial crisis and threat of job cuts is also making consumers reluctant to spend. | |
Research company GfK NOP said its consumer confidence index slipped to -36 in October from -32 in September. | |
"The turmoil surrounding the banking world and subsequent turbulence in the financial markets is making for an uncertain time," said Rachael Joy from GfK's consumer confidence team. | |
"Consumers are not at all confident about buying major purchases as rising food and energy bills leave them increasingly worried about keeping up with payments." |
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