As per the latest Work Audit reports published by the Chartered Institute of Personnel and Development (CIPD), in the first year of the government in the office, there have been more than 250,000 jobs cuts in the first quarter of the current financial year which is about five times more than what was projected by the Office for Budget Responsibility (OBR).
This has definitely led to high the number of unemployed in the UK. Along with this report, there are two other independent reports that suggest that the confidence for employment sector in the UK is at some of its lowest levels.
The first of such reports is the latest Deloitte Chief Financial Officers (CFO) surveys, which suggests that optimism amongst CFOs of some of the major leading companies in the UK fell for a third quarter in a row. Nearly 50% of the executives who were questioned felt that UK will fall back into recession. This was more than 33% when compared to the last quarter.
The second report that has a similar conclusion is the Business Trend report by the Accounts released by BDO. As per the report, the confidence in manufacturing and service sectors has declined to a 2 year low. For the first time since 2009, the reports for the manufacturing and service sectors show levels of optimism at just 93.3 mark which is below the 95 mark which indicates growth.
As the UKís economy grew to just 50% of the expectations, the repercussions are far and wide. In the second quarter of 2011, the economy grew by just 0.1% against the expected 0.2%. The quantitative easing commitment has helped to gain some market confidence that the government will do what it takes but such depressed data and forecasts have nevertheless taken its toll on the foreign exchange rates. Today, the British Pound fell and depreciated against 16 major countries that is tracked against it by Bloomberg. The weakening of the Pound was a direct result of low confidence in the employment market and poor outlook for jobs.
While the private sector is doing its utmost to keep up with the challenges of low liquidity and rising inflation, it looks like employers have to brace themselves for another round of redundancy as the outlook for the economic growth for the UK remains depressed. Many believe firmly that UK will once again get into a recession in the first quarter of 2012.
Stuart Boseley, Director of Best Insurance suggested that, it is not time to be complacent, people should realise that no job in this current climate is certain. The only thing that is certain is change and as we charter into unexplored economic waters, it is crucial for people not to be complacent and invest into a good income protection policy.
Best Income Protection policies are designed to help people cover their expenses if they lost job. The income protection insurance offered by Best Insurance has no links with the outgoings such as mortgages, loans or other commitments and purely a function of income. Customers can buy income protection insurance to cover upto 50% of their annual gross income. The income protection insurance is also best suited for people who do not want to itemise their outgoings.
Best Insurance is one the UKs largest providers of income protection insurance.
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