UK managers expect a double dip recession as the bleak economic climate sees job cuts in both the private and public sector
UK managers are predicting a double dip recession as the private sector fails to fill jobs that were lost and public sector cutbacks provide a grim background to David Cameron’s address to the Conservative Party conference.
The Chartered Management Institute (CMI) said it sees little prospect for an early recovery. The CMI has called for the coalition Government to go further and faster with the deficit reduction programme to improve the long term prospects for future jobs growth.
Only 8% of the 616 CMI members who were polled about the economy expected to see any growth over the next 12 months with more than 65% feeling the economy would fall back into recession. David Cameron’s address took another blow as private sector managers are pessimistic about the employment outlook with 80% expecting further cuts compared to 73% in the public sector.
Many managers do agree that the spending cuts need to speed up, even though 60% believe the cuts will affect their business. Managers agree with David Cameron that they would rather suffer a double dip than increase sovereign debt which would slow down the economic recovery.
With fears of a double dip many managers are cautious over their recruitment, which means that many businesses may reduce if not freeze their recruitment process. This is bad news for the 2.51 million workers who are unemployed, and also the recent graduates who are still struggling to find jobs.
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