100,000 manufacturing jobs at risk in 2009 as recession bites

Almost 100,000 manufacturing jobs will be lost next year as the UK plunges into recession, according to a report.

The December 2008 Engineering Outlook survey by employers’ body the EEF and advisory firm Grant Thornton shows manufacturing will be hit hard in 2009.

Both output and orders fell into decline over the last three months, with worse expected to come after Christmas.

The number of people working in the sector is predicted to plummet from 2.78 million to 2.69m – a drop equivalent to 90,000 full-time jobs.

However, there are some words of encouragement in the report, which was based on a survey of 807 companies between 30 October and 19 November.

“While further job losses will be experienced in engineering and manufacturing, the pace of job cuts will not match that of previous recessions,” it says.

“Despite a fall in output and uncertain outlook, manufacturers are taking steps to cut production and shifts rather than staff levels.”

Meanwhile, data from the Chartered Institute of Purchasing and Supply also showed manufacturing output, orders and employment had hit new lows.

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