Employees lose confidence in job security

Workers are rapidly losing confidence in the security of their jobs, research has revealed.

A survey of 2,000 adults by bank Lloyds TSB showed that more than a quarter believed their job was less safe than a year ago. Just one in 10 said their job had become more secure.

Almost two-thirds of those polled said employment prospects across the UK were worse, with just 5% saying they were better.

Gloomy workers also fear that food and fuel prices will continue to rise over the next 12 months, and predict that interest rates will also go up.

Trevor Williams, chief economist at Lloyds TSB Corporate Markets, said: "The combination of falling employment confidence and rising inflation expectations is a lethal cocktail for consumer spending.

"If people don't feel safe in their job and high prices are putting incomes under pressure then demand for discretionary purchases will naturally slow," he added.

A report by professional services firm KPMG last week found that more than half of UK employers expected to cut jobs due to the economic slowdown.