Record fall in service sector jobs recorded

26/02/2009

Service sector jobs have fallen rapidly over the last three months, a study has found.

The Confederation of British Industry's (CBI) quarterly survey of businesses revealed the sharpest drop in jobs in its ten-year history.

Profitability declines at accountancy and legal firms as a result of the recession were cited as a cause for the figures, while access to credit remains a concern.

Chief economic advisor at the CBI Ian McCafferty remarked: "An already deteriorating demand for business services such as advertising, legal advice and temporary office staff has slumped in recent months," adding that the expectation of respondents is that "conditions will remain depressed for some time to come".

The survey was launched in November 1998 and the highest proportion of firms predicting lack of demand to limit growth over the coming year was recorded this time around.

Earlier this week, the CBI revealed that retail jobs had also been declining at a record rate.

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