In 2009, 600,000 Jobs Less in Great Britain

Approximately 600,000 people could lose their jobs in Great Britain next year, making 2009 the worst year for unemployment since 1991, personnel experts warned on Monday.

The British Chartered Institute of Personnel and Development (CIPD) announced that the expected recession next year will hit Great Britain hard and could push unemployment towards three million before the economy begins to recover. "By the end of 2009, the number of unemployed people actively seeking work will increase to 2.8 million, which is one million more compared to autumn 2008," emphasized John Philpott, chief economist of CIPD in the annual report. The first few months of next year, he said, are likely to be the worst in nearly two decades.

"Currently, we expect, based on available survey results and employer statements, that the number of laid-off workers will increase in the early months of 2009, after employers weigh economic forecasts. The period between New Year and Easter is likely to be the worst since 1991." The CIPD warning was issued at a time when the British retail chain for children’s clothing announced bankruptcy. The bankruptcy of Adams, which employs about 2,000 workers, followed a series of bankruptcies in the retail sector, including the Woolworths chain, the Zavvi music store chain, the Whittard tea and coffee shop, and the men’s clothing group The Officer’s Club.

Woolworths declared bankruptcy in November, noting that all stores would close by January 5 and 27,000 workers would be laid off unless a buyer is found at the last minute. The CIPD also conducted a survey among 2,600 workers and found that those who retained their jobs expect a wage freeze or even a reduction in 2009. About 28 percent of respondents do not expect a raise in 2009, while 26 percent believe their salary will grow less than in 2008. Only 11 percent expect a salary increase greater than the previous year, while two percent expect salary cuts.  (H)