Great Britain is facing one of the toughest job markets in two decades as the numbers of working people is expected to fall by 120,000 in the year 2012. It was announced by the Chartered Institute of Personnel and Development.
John Philpot, the chief economic advisor at the CIPD, said that the UK job market is expected to be weaker than any time since the recession we saw during the 1990’s. The situation is really pathetic because of the combination of tremendous job shortages for people with no work, increasing amount of job insecurity and a gradual fall in the real earnings of the people who are working.
All these factors lead to the slower purchasing power of the people, which in turn leads to a slower economic cycle in the long run. A continuation of this phase leads to the lower collection of taxes and this has lead to the highest ever fiscal deficit of the UK Government.