RTTNews - U.K.'s business services sector will lose more than half of the jobs it gained during the last five years by 2013, a recent study by the the Centre for Economics and Business Research revealed Monday.
Nearly 334,000 jobs in the business services sector would be disappeared due to the financial crisis and those sectors that rely on the investment cycle, discretionary budgets and public sector spending will suffer the most.
The CEBR projects employment in the sector to fall by 8% in 2013 compared to the peak in 2008 and output to decline 5%. This is in contrast to a 20% rise in employment and 15% rise in output experienced between 2003 and 2008.
The CEBR said the worst hit sector will be advertising, where 15,000 jobs are likely to be removed over the period from 2008 to 2013.
Further, the think tank said the recent and continued deterioration of public finances is also going to have a significant effect on the business services sector. With public sector expenditure set for cutbacks from 2010 onwards, the prospects for business services necessarily diminish as well, it said.
Arek Ohanissian, one of the report's authors said, Though most sectors in the UK economy will suffer from the recession, the dramatic reversal of fortunes for the business services sector from strong performance to significant losses would have been hard to imagine even at the onset of the financial crisis.
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