08/01/2002

Recruitment and Employment Confederation fears unemployment rise

The Recruitment and Employment Confederation has expressed fears over the future of the UK economy with warnings of rising unemployment.

Following the findings of a survey of national press advertisement pages, which showed that the volume of recruitment ads placed was up to 40 per cent lower in November 2001 than in the same period the previous year, the Confederation has predicted that UK unemployment will return to just above the one million mark. This would represent the fastest rate of decline in employment since the index was first compiled nearly 20 years ago.

The Confederation reported that the quantity of ads placed by private sector firms fell by almost 60 per cent in November, compared with six per cent for public sector organisations, which are backed by buoyant government spending.

The report comes as retailers and car dealers are reporting strong sales, however analysts believe higher unemployment could undermine consumer confidence which has kept High Street trading strong. (MB)

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