Britannia Radio

The infection is everywhere now. Today it’s unemployment which
features. It’s threatened here in a big way and has already hit hard
in Spain and Ireland. France is teetering on the brink of deeper
trouble.

CS
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THE TIMES 18.8.08
1. Economic slump puts 300,000 jobs on the line
Gráinne Gilmore, Economics Correspondent

Up to 300,000 workers will lose their jobs by 2011, pushing the
number of people out of work close to 2 million, a leading business
group says today.

The British Chambers of Commerce, which becomes the first business
group to forecast that Britain would fall into recession, predicts
that the economic slump will force unemployment to soar by between
250,000 and 300,000 in the next two to three years, adding that total
unemployment of more than 2 million could not be ruled out. This
would take unemployment to the same level as the year that Labour
came to power.

The BCC said there was a possibility that the economy would shrink
during two quarters before next March, pushing the country into a
technical recession. It cut its forecast for economic growth to 1.3
per cent this year and 1.1 per cent next year, down from 1.7 per cent
this year and 1.6 per cent in 2009.

The Bank of England is battling soaring inflation as well as the
slumping economy. Inflation reached a 16-year high of 4.4 per cent
last month, more than double the Bank’s 2 per cent target.

But David Kern, economic adviser to the BCC, said: “Our view is that
the threats to growth are more serious and more immediate than the
risks of higher inflation. The UK economy urgently needs an interest
rate cut to counter threats of recession.”

The number of people claiming unemployment benefits surged at its
fastest rate for 16 years during July, rising by 20,100. The total
number of people out of work is 1.67 million, according to official
figures.

The threat of job losses will pile more pressure on beleaguered
householders. The soaring cost of food and energy has cut families’
spending power by nearly £700 a year, according to a survey for Asda
published to-day. Essential items now cost the poorest families an
average of £7 a week more than they earn, pushing them further into
debt.
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AND
2. France's economic growth slows to a trickle
Gary Duncan, Economics Editor

The French economy will eke out modest growth of just 0.1 per cent in
the present quarter, after suffering a surprise contraction in the
previous three months, the Bank of France said today.

The central bank’s forecast came as its latest survey of corporate
managers revealed expectations of a further decline in business
activity in the coming months.

The Bank of France’s monthly barometer of business sentiment across
industry fell to a July reading of 92, down from 95 in June, and 105
in February.

The news offered a gloomy backdrop ahead of a key meeting later today
convened by Francois Fillon, the French Prime Minister, to confront
France’s deteriorating prospects.

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AND
3. Ireland’s jobless up 40% on a year ago
A staggering 63,000 people join the live register since June last
year as construction gloom spreads throughout economy
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