Unemployment to rise as UK returns to recession

New Bank of England research suggests that redundancies in the private services sector will increase drastically as the UK seems to be slipping back into recession.

The service sector accounts for three quarters of the UK economy, and the research reports that employers across various areas are "taking a pause from recruitment". Even employers in the stronger manufacturing sector suggested that there could be redundancies in the near future as the UK economy continues to shrink its way back into recession.

Office for National Statistics (ONS) showed that the UK economy shrank by 0.2pc in the last quarter of 2011. Economists vary on their optimism for the UK economy but all recognise a clear and real risk of slipping back into recession.

The large scale redundancies due to hit the public sector will have a knock on effect in the private sector - most particularly in retail, and while it was hope that the job shortfall created by the government cuts would be made up by new jobs in the private sector, it is now increasingly more unlikely that that will be the case.

If you live in Northern Ireland and require legal advice in respect of a redundancy process, offer of voluntary redundancy, or another employment matter, such as unfair dismissal or discrimination, contact one of the employment law solicitors at Wilson Nesbitt by calling 0800 840 9296.

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