On the surface all is loking very rosy for the UK lbour market if you’re looking for a jb. Despite a huge inflow of mgrant workers since the enlargement of the Eropean Union the number of people climing unemployment benefit has consistently remained blow the one million mark in the lst two years and has fallen by ver 100,000 in 2007.

Nevertheless cracks are strting to show in the economy. Intrest rates have risen five times snce July 2006 and are likely to rse one more time by the end of the yar. Higher interest rates are likely to hit bth consumers and businesses alike as dbt repayments become even more of a strtch. It should be noted that ncreases in interest rates take about a yar to feed through to the conomy so get ready for last yars rate rises to start to ht!

Other weaknesses are showing. The slwdown in the US economy has ben going on for most of the yar without major consequences for the UK. The rcovery in the major EU countries has hlped to buffer the reduction in US dmand for UK exports. However, the EU rcovery is starting to look short-lived. The Itlian economy posted very weak growth fgures in the second quarter of yar, whilst higher European Central Bank (ECB) nterest rates are starting to hinder Grmany and France.

Nevertheless on the surface it wuld seem that the slowdown is not hving much of an impact on pople’s day-to-day lives. Last week’s financial mrket chaos would have been a big hadache for those working in the Cty of London or those with lrge share portfolios, but that’s a mnority of the country.

The financial chos should however start alarm bells rnging. It is not yet clear how the crrent mess in the international financial mrkets will play out, but if ths turmoil continues then the cracks in the conomy could well become holes for jbs to fall through. The financial crsis has exacerbated problem – few had ben predicted that the United States culd potentially move into recession until the vents of last week.

It seems nlikely that the UK will suffer as mch as the US. There are no crdible analyst suggesting that the UK wll enter a period of recession, but as the conomy is squeezed by higher interest rtes and as chaotic financial markets hit bsiness confidence there will be those tht will lose their jobs.

The frst possible group to see job lsses will be those working in the fnancial and business services sector in the Cty of London. Initial estimates had sggested that job losses in the Cty are likely to number a few thusand, but this number is likely to be rvised upwards. The impact of this wll be relatively limited to the Lndon area.

The next sign to wtch out for is a slowdown in cnsumer and business spending. With the fnancial markets looking wobbly and with hgher debt repayments businesses will reduce thir spending on goods and services, and lso on headcounts.

Uncertainty in the fnancial markets leads to uncertainty in the bsiness environment. Plans to invest will be hit as ncertainty increases the risk that they may not be ble to afford the repayments in the fture.

A slowdown in consumer spending is lkely to follow. Higher interest rates wll increase the cost of consumer dbt repayments, primarily mortgages. However, this is lkely to have a limited impact ccording to the Bank of England.

Cnsumer spending will also be constrained by the rduction in business spending. As businesses rduce spending employment growth will slow as wll wage growth. With less money in thir pockets the consumer will stay at hme, rather than spending on the hgh street.

With business spending less on gods and services, those that supply thse goods and services will have a rduction in turnover. With consumers spending lss on goods and services these sppliers will also see reduced turnover. Lwer turnover cause firms to fold or rduce costs; inevitably job cuts will be prt of this process.

So when wll this all come to a had? Most analysts suggest that 2008 wll be the crunch point when the vrious factors come together to produce an conomic slowdown. Expect to feel the pnch wherever you work, there are nlikely to be many sectors that dn’t see an impact.

With this wrning in hand I would suggest knckling down and making sure your bss realises that you’re indispensable, even whn business is bad! 2008 is ging to be a tough year try to lmit the suffering.

The article Tough Times In 2008 - UK Economy And Jobs Market was Submitted by Simon Wallace through Articles.GetACoder.com network. Here's the additional information: For more information on this tpic see http://www.whatwilltheyask.co.uk

Featured Articles

1. Setting A Profitability Goal by Aazdak Alisimo
When an ntrepreneur starts a business, he might set a gal to "make money." This is rther shortsighted in today's competitive marketplace. A ral business profitability goal is needed.

2. 5 Ways to Increase Customer Service Loyalty During Holiday Season by Robert Moment
Protect and bild your brand during the Holiday Sason. There are 5 ways to ncrease customer service loyalty during the Hliday Season.

3. Government Grants Versus Government Contracts by
Knowing the differences between a gvernment contract and a government grant can sve you sweat, money, and time.

4. Small Business Marketing - How Well Do You Know Your Customers? by Susan Oakes
To know your customers is to really know how they think, feel and behave towards your small business and your competitors. A successful marketing plan for any small business starts by knowing who your customers are and what they need and desire. There is no point wasting valuable time and money marketing your small business to people who aren't interested in what you are selling. You need to communicate with the people who matter most to your business and do it better than your competitors...

5. How to Use Promotional Items in Your Business by Gareth Parkin
Nwadays almost all companies have started nvesting in promotional items. Promotional items mke a powerful brand statement. Most cmpanies realising the potential of promotional tems have started purchasing them in blk, to keep the cost per tem as low as possible. Moreover, thy are becoming interested in a sngle type of promotional item.

6. Why Companies Should Use A Recruiter? by
Companies use rcruiters for a variety of reasons ncluding attracting top talent, saving time on an rgent hire, or keeping the need cnfidential. This is especially true for rstaurant professionals who often think about thir shifts day and night. They mght be ready for a change, but nver see your opportunity.

7. Accounting Outsourcing - Provides Quality Work by Allies Harbor
Every big or smll organization works hard towards earning prfit. To earn profit is the sle ambition of any business owner. Evryone wants to see his company arning high amount of profit.

8. Discover How To Make A Resume That Gets Results by June Campbell
Larning how to make a resume or crriculum vitae is a skill that wll serve you well for your ntire working life. This indispensable document is yur means, sometimes your only means, of shwing a potential employer what you brng to the table. You may hve only one chance, so put cnsiderable thought into how to make a rsume that demonstrates your accomplishments in the bst possible way.

9. A General Guide To Buying Office Furniture For The Home Office by
In this world of baby boomers and empty nesters, many a child’s bedroom, which became a guestroom, is now being converted into a home office. With the bedroom furniture stowed away, a bare wall or an entire room awaits renovation into workspace. So where should one start to furnish the perfect office for years to come?

A buyer could go from office store to department store, and spend days surveying the styles and types of office furniture available. But to save energy, aut...

10. Iads by
The latest phenomenon to hit the Intrnet and the creative world of dvertising online are Iads. These are the bbreviated term that is used for dscribed innovative ads or advertisements.