STOCK MARKET WATCH -- Wednesday, 25 January 2012

[Ghost Dog]

54. Unemployment to soar as UK heads back into recession

Research by the Bank of England found that companies in Britain’s dominant services sector, which accounts for three quarters of the economy, are planning to reduce headcount.

“Having already pared back non-labour costs as much as possible during the recession, many business services contacts now felt that they would be forced to reduce staff numbers,” the report said.

Bankers, lawyers, accountants, retailers and hauliers are all expected to be caught up in the “shakeout”. Even manufacturers, which have been enjoying strong growth, have “reported that they were taking a pause from further recruitment, in light of heightened uncertainty about the outlook and a slowing in orders”.

The warning came after official figures confirmed that the economy has begun to contract again at a faster rate than expected, raising the prospect of a lurch back into recession.

/... http://www.telegraph.co.uk/finance/economics/9038781/Unemployment-to-soar-as-UK-heads-back-into-recession.html