Hospitality shedding jobs at fastest rate in a decade
Hotels, bars and restaurants are cutting jobs at the fastest rate in more than a decade as the economic crisis intensifies, the CBI has revealed.
The latest quarterly CBI Service Sector Survey of 195 businesses found that respondents had further plans to scale back jobs after a sharp fall in profit and business volumes was reported for the three months to February.
In consumer services - including hotels, bars and restaurants - the numbers employed fell at a record rate, a drop of 22%, having risen slightly in the preceding quarter for the first time in a year.
More firms expected to see job losses over the next quarter (a balance of -44% - the worst figure since November 2001 when the balance fell to -59%).
Ian McCafferty, the CBI's chief economic adviser, said: "Jobs are already being lost at the fastest rate for more than 10 years across the service sector, and expectations suggest conditions will remain depressed for some time to come."
He called on the government to ensure that its credit support package reaches viable firms with immediate needs.
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By Daniel Thomas
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