Report predicts massive business services cuts in UK

16/12/2008

Around 275,000 business services jobs could be lost thanks to the current economic slowdown, a shock new report claims.

According to the Centre for Economics and Business Research (cebr), the sector - including advertising and research and development jobs - will shrink by 169,000 next year and 106,000 in 2010.

Government figures predict the recession to last throughout next year, with the economy shrinking by up to 1.25 per cent.

This slowdown would eat into many firms' profits, leading to the lay-offs.

Indeed, the cebr predicts that in advertising, worker numbers in 2010 will be at levels not seen since 1995.

Jorg Radeke, one of the cebr report's authors, commented: "With discretionary budgets slashed, investment collapsing and the housing market remaining in the doldrums, it is difficult to see where any growth is going to come from.

"The business services sector is set to have its biggest shake-out for decades."

Tags; Job loss, Recent Graduate Debt,

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