Job losses in recession 'affecting white collar workers'

16/07/2009

More managers and other people in "white collar" jobs are being made redundant in the current recession, when compared with previous downturns.

This is the main result of new analysis from the Recruitment & Employment Confederation, released today.

The report follows the release of official unemployment statistics, showing that job losses in the UK have risen to 2.4 million, a 14-year high.

Over recent months, financial services professionals and engineering firms have imposed sharp reductions in headcounts.

However, the downturns in the 1970s and 1980s led to a higher proportion of miners and people in heavy industry losing their jobs.

Tom Hadley, director of external affairs at the Recruitment & Employment Confederation, said: "A lot of Jobcentres are having a lot of high-level workers coming through their doors."

"There has been a bigger impact in this recession on the white collar, not to say that the blue collar hasn't been affected as well … It has been quite a big wake-up call, especially for those at the higher end of the jobs market who thought they were going to be safe."

Kevin Still, EuroDebt director, commented: "The effect of redundancies with white collar workers is likely to result in socio-economic groups facing financial hardship that previously haven't been in this position. Many will be homeowners probably facing negative equity and with limited financial reserves. Most would expect to find new employment in due course, but may face a period of substantially reduced income, but with high fixed expenditure that cannot be quickly reduced. EuroDebt has seen a significant growth in homeowners joining Debt Management Plans during the recession often with early stage mortgage arrears. With many of the non-specialist mortgage and secured loan providers now offering a range of schemes to assist homeowners in difficulty, a Debt Management Plan can be very effective as a transitional debt solution that can readily take account of changes in circumstances."

He added: "EuroDebt's average homeowner has over £35,000 of unsecured debt with 9 credit agreements. This volume of agreements is difficult for all but the most organised to individual to self-manage with their creditors. Indeed, many of these people will not have experienced some of the firm and determined efforts of lenders and their collectors to collect any arrears that may accrue.

"EuroDebt has provided informative Facts Sheets from the Credit Services Association in its 'Consumer Alert' section of its website regarding the Debt Collection Processes."

Tags; Young Family Finances, Job loss, Recent Graduate Debt,

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