Alarming News for the Business Services Industry

A further 334,000 jobs are expected to be lost in the business services sector due to the direct effect of the financial recession.  This report comes amidst news of recent growth in British industry, and for many this latest revelation from the Center for Economics and Business Research comes as a surprise.  Their reports indicated that more than half of all jobs created in the business service industry over the past five years will be lost by 2011.  This means hard hits for IT services, Accountancy firms and also the legal sector.

The results of this study have dealt a potentially devastating blow to the business services sector which has been working hard to recover from revenue drops of almost 4% in the past year alone. What this means for UK industry is uncertain, but in past year’s business services have been the major growth industry and thus one of the strongest parts of the British economy.

Whilst continuing to feel the effects of the current economic recession, the current British government has been seen almost stationary on recent news of future economic risks and alarmingly, public borrowing has also started to rise to levels which create a great deal of uncertainty for the banks and financial institutions of the UK.

With even more job cuts looking likely for the future, The UK is in a precarious position and numerous criticisms based on the financial crisis towards the government in charge.  Economic analysts continue to warn that it will be a slow and tumultuous process unless some clear direction is given from the government on how to deal with the vast range of issues that are affecting the faltering economy of the United Kingdom.

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