Slowdown in UK factory job losses

August 9, 2007 - 0:0

UK manufacturing job losses have slowed to their lowest level in two years - despite shrinking growth in demand for goods, CBI figures have shown.

Just 5,000 jobs were lost in the three months to July, compared with an average of 30,000 a quarter since 2003.
Meanwhile, factory orders rose for the third quarter in a row, albeit at a slower pace than last year.
Employment actually increased in four areas, led by the Midlands and North West, the regional trends survey added.
However, job losses were still reported in factories across the Midlands, London, the South West and South East.
Looking ahead, the CBI predicted that job losses would continue at a rate of about 8,000 in the current quarter - with the West Midlands and South West likely to be hardest hit.
""The manufacturing sector's revival is continuing although the rate of growth has slowed,"" said the CBI's head of economic policy Doug Godden.
""With more firms now working flat out than at any time since early 2006 there has been a very welcome effect on jobs.""
Elsewhere, the report found that as orders increased, manufacturers were left at their most optimistic about future orders since 1995.
Output continued to grow, but also at a slower pace, with most regions experiencing a healthy rise in exports.
Meanwhile on the cost side, rising fuel prices ate into profit margins but producers were also confident about raising prices for customers. (Source: BBC)