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Impact Of The 2008 Financial Crisis On The UK Economy

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Since the start of October, thousands of jobs cuts have been announced at UK economy across all sectors. Referring to Financial crisis: UK job losses report from telegraph 3Dec2008, British companies have confirmed total 155,385 jobs loss since October 2008 until Aug 2009 . Example:-
January 6 2009, Woolworths' last 200 UK stores shut down and leaving more than 27,000 people unemployed.
March 25 2009 - HSBC confirmed plans to cut up to 1,200 UK jobs to reduce costs to continue support with an increasingly challenging market.

Below is tables for jobs losses in the UK Oct 2008 until Aug 2009 and is meant to be an insight into the impact of the financial crisis on employment in the country.

2008 Financial crisis impact on UK …show more content…

Beginning of 2008 financial crisis started ,exchange rate drop more than 7000 points until end of 2009, exchange rate affected the trading of both exports and imports more than 20%, when imports and exports both are decreasing that we can easier to understand that many firms would receive less and less orders which will caused the firms to cut short staffs or may facing the possibility of go to bankruptcy.
The unemployment rate increased around from those 18-24 young people group, when people lost the jobs, they started to reduce the expenses and could not afford the high mortgage loan and possibility have to refinance . Banks and mortgage intermediary unable to suffer the loss while borrowers were facing the situation of non-attendance the contracts. Some banks have to ask for help from the government who agreed to conduct rescue plans or nationalizing by buying their stock and also use monetary policy of quantitative reduction to save the …show more content…

There were not enough job places to fill up job seekers. Many young people prefer to stay at home and rely on claiming jobless benefits rather than giving another try to search job to reduce the burden of government debit. Some students decide to continue future study during economic downturn in order to give more opportunity for securing jobs. Due to the vacancies number disappear, it will be much difficult to get people back into

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