As many as two-thirds of employers will be cutting jobs in the coming months as the credit crunch continues to bite.
A survey of 1,403 employers by law consultancy Peninsula this summer found 64% could not rule out redundancies as the UK economy teeters on the brink of recession.
The survey also revealed that three-quarters of employers had implemented or planned to introduce a recruitment freeze in the foreseeable future to tackle rising staff costs.
Almost nine in 10 organisations said that the credit crunch was having an adverse effect on their business.
Peter Done, managing director of Peninsula, said: “Employers has had to put a hold on recruitment as the credit crunch bites. It is understandable that businesses want to be in good shape coming out of this economic uncertainty and so redundancies cannot be ruled out.
“Obviously there will be many worried workers, so employers should make it clear to their workers what their intentions are.”
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Peninsula’s legal helpline has seen a significant increase in the number of employers seeking advice on redundancy, with an average of 3,000 calls per week during July and August, according to Done.
Last week British Airways’ people director Tony McCarthy told Personnel Today he couldn’t rule out job cuts this side of Christmas as the airline struggled with falling profits.
