Recovery will not boost jobs
Nov 03 2009
“Companies won't be hiring more staff in the upturn”
When the upturn arrives many companies will not be looking to hire more staff, claims accountancy firm BDO.
According to firm, while economic output declined by 5.6 per cent between the first quarter of 2008 and the secon quarter of 2009, employment only declined by 1.9 per cent in the same period – a smaller amount than previous recessions.
Peter Hemington, Partner, BDO says: ‘Many companies have done their utmost to hold onto staff. However, this will mean it is unlikely that they will be advertising for new recruits even when demand increases. Unfortunately there will be no silver bullet for unemployment when recovery does arrive.
‘It’s clear that a renewed sense of optimism isn’t necessarily being reflected where it counts – order books. This suggests that it could be a while before a strong upturn arrives.’
BDO forecasts that unemployment is likely to hit 2.75 million in November 2010, from the current figure of 2.47 million.
A recent article by the Office for National Statistics claimed people who are married, own their own homes and live in the South East have a higher chance of returning to work after being made redundant than those who are single, rent council houses and live in Scotland.