Recession over – What happens next?
The UK economy grew by 0.1 per cent in the last quarter of 2009, officially ending the recession. The economy had previously contracted for six consecutive quarters, the longest period since quarterly figures were first recorded in 1955.
According to the British Chamber of Commerce (BCC), however, businesses are anticipating another difficult year ahead despite the “recovery.”
Of 5,400 businesses surveyed by the BCC, 63% per cent say they are planning wage freezes or pay cuts this year and 18% are considering the removal of benefits.
Furthermore, the Chartered Institute of Personnel and Development (CIPD) predicts that that businesses will continue to make redundancies next year with the UK economy set to shed a further 250,000 jobs before unemployment peaks at 2.8 million in 2010. This figure could be higher depending on the severity of public spending cuts and whether employers take into account national insurance contribution increases for 2011 when making staffing decisions.
Blaser Mills has a team of experienced employment law solicitors ready to provide expert advice to support your business in dealing with its staffing issues. Please contact us at firstname.lastname@example.org.