Warnings of a recession have been ringing for quite sometime, but the threat of increased unemployment will be loud and clear in Britain as fewer jobs come to the surface. In a survey of employment agencies, it was found that the number of permanent jobs has decreased for the first time in the past five years. The survey also found that the number of workers seeking employment increased in June while the need for temporary staffing is stalling.
According to economists, it is a slowdown such as this that is transforming into the first recession Britain has experienced in nearly twenty years. This threat of recession will be largely determined by how much attention businesses place on decreasing their workforce to protect their bottom line due to the discouraging combination of decreasing demand and rising expenses. UK will likely experience a lengthy period of slow economic activity as companies try to survive the current financial crunch.
Due to the struggling labor market and increased unemployment, many households are facing tighter budgets than ever before. In fact, even those fortunate to still have employment are struggling to keep the household finances afloat with many dipping into savings to cover basic expenses. For everyone involved, now is the time to begin supplementing their income to every extent possible to avoid touching their savings since it has been reported that unemployment in Britain will likely increase by 100,000 during the next couple years.
Some of the larger companies in Britain are laying off workers in numbers ranging from 500 to 1,000 employees at a time, but Britain is not the only region facing rising unemployment rates. Unemployment in the United States and many regions of Western Europe are dealing with the same discouraging numbers.
If a discouraging labor market was not bad enough, an economist at Global Insight forecasts businesses to invest less money in the next couple years in light of tighter lending, decreasing profits and less confidence in businesses generally. One contributing factor is the decreasing amount of credit banks are making available to companies as they respond to the slow economic activity.
With housing prices decreasing, oil prices skyrocketing and food costs gradually rising, some areas may be hit with inflation reaching four percent by years end. Until the banks and policymakers are able to reign in the inflation problem and bring the market back to a plateau, consumers remain strapped with less disposable income and a struggling labor market.
Fortunately, offline employment is not the only option today thanks to the platform of the internet opening the way for ordinary people to earn a risk-free profit. Gaming has become one of the largest growing industries on the internet, particularly due to the new software available allowing individuals to scan prices globally in only a few seconds to find risk-free betting opportunities. Sports arbitrage trading is one technique providing guaranteed returns of as much as twelve percent monthly, as former trader Rajeev Shah discusses in his book Sports-Arbitrage – How to Place Riskless Bets and Create Tax-Free Investments. The UK Government recently announced that profits from arbitrage trading will remain free of both income tax and capital gains tax. With so many online traders earning profits from sports arbitrage techniques, perhaps tight budgets may soon find some breathing room until Britain and the rest of the world can provide some much needed economic relief.
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