Triple Dip Recession on the Horizon

Over the past 2 weeks the new phrase “triple dip recession” has been banded around the financial pages of the newspapers and the Internet.

It is believed the UK is on the brink of entering into its third period of recessionary economic activity since the end of 2008. The economy is defined as going into recession if it experiences two quarters of negative growth.

There have been a number of indicators recently that City Centre have seen which point to a likely Triple Dip Recession occurring.

Firstly; at the beginning of this week it was announced, by a leading City of London recruitment agency, that November was the worst month for the creation of jobs within the square mile since the beginning of the credit crunch in 2007/08. It reports approximately 1790 new jobs were created within the City in November compared to over 13,000 in November 2007.  Since 2007 the number of jobs created has fallen to around 3000 per month for November. However November 2012 has seen a significant dip to a new low.

Secondly figures have been announced in the past few hours which show a serious weakening in the UK’s service sector which makes up around 75% of the UK economy.

The Markit purchasing managers index (PMI) found that the services sector slowed to 50.2 from 50.6 in October. The index, which measures the output, orders and employment, shows a sector is growing when figures exceed 50.

More worryingly, the index for future orders fell to 49.6 from 52.9 in October.

It is likely the UK is experiencing a post Olympics hangover after seeing Olympic backed growth in Q3.

This national picture is taking time to filter down to businesses in Dorset, Hampshire and Somerset where City Centre is still experiencing reasonable business confidence from its customers, but we are sure this will happen soon. It is imperative that companies in all sectors stay as flexible as possible to ensure they are able to adapt to a sudden drop off in orders. A number of businesses City Centre provide staff to do this by using temporary staff. Since 2008 our service has changed significantly from providing top up or sick cover staff to becoming a strategic partner.

By taking on the role of strategic partner to a number of businesses City Centre has been able to invest in a bespoke manor to ensure our customers get what they want. This can involve; on site check ins, off site/on site inductions, IT driven AWR and time and attendance solutions, dedicated on site account managers, one stop shop solutions to include permanent recruitment for “hard to fill” positions as well as clients volume work.

If your business is also seeing the signs of further turbulent times ahead and would like to discuss how City Centre is able to tailor its service to your business then please do not hesitate to drop one of the Directors an email who will be more than happy to go through the options currently deployed and also the ones that aren’t.

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City Centre

Dan Shrimpton - Managing Director City Centre Recruitment

Bournemouth - 01202 586 930

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