At the same time confidence among British businesses is languishing near a record low as consumers retreat in the wake of slumping house prices, currently falling around 2 per cent a month.
Braintree, Essex (PRWEB) September 22, 2008
"'When sorrows come they come not single spies but in battalions'. These words of Winston Churchill have never been more apt than when applied to the financial crisis that is currently engulfing the globe," notes Burgesses Managing Director Sara-Ann Burgess.
"The problem is we don't have a charismatic leader like Churchill to steer us into calmer waters and many people are in danger of going under.
"Examine the facts. The 158-year-old investment bank Lehman's has gone under with the knock on effect of 5,000 workers in this country are now looking for another job. The behemoth that is American International Group (AIG) with a worldwide workforce of 116,000, and more than 2,000 of those in this country, has gone cap in hand to beg for a multi-billion dollar lifeline from the US central bank. HBOS - the biggest mortgage lender in the country - is forced into the arms of Lloyds TSB with job 'rationalisation' inevitable.
"At the same time confidence among British businesses is languishing near a record low as consumers retreat in the wake of slumping house prices, currently falling around 2 per cent a month."
This sharp downturn is adversely affecting the jobs market. Last month saw the biggest monthly increase in the unemployed (81,000) since Dec 92 - the seventh successive monthly rise, while the number of job vacancies has shrunk.
But there is even worse to come. Experts predict that up to half a million workers will lose their jobs over the next two years when the contagion spreads beyond the City of London and into the wider economy. Most at risk are the seven million employed in the vulnerable retail and leisure industries. Thousands have already lost their jobs this year and car manufacturers are also scaling back production as demand for new motors falls off the scale. The construction industry faces destruction with to 50,000 workers in this sector having already lost their jobs.
Burgess added: "There can be no doubt that we are in the middle of economic recession and it is unlikely that the economy will turnaround anytime soon.
"The latest seismic shocks to the world's financial system has meant that the rate at which banks lend to each other has jumped again - which will make mortgages more expensive at a time of rocketing inflation.
"At the same time people are much less secure in their jobs. What people crave in such an environment is peace of mind. They want to know that should the worst happen they will always have a roof over their heads.
"It's comforting to know that it is possible to buy peace of mind and it doesn't cost the earth. Insuring against being unable to pay your mortgage because of http:/accident sickness or unemployment cover is available for as little as £1.60 per £100 per month from independent insurance providers such as British Insurance."
For most people, their mortgage is the most important financial obligation because their homes are secured by it. Failure to meet mortgage repayment guidelines can result in repossession and with banks currently very short of capital they are more likely to move to take charge of your house.