You are here: Home » News, views and events » Press releases » NESTA survey reveals extent of unemployment fears in recruitment and real estate sectors

NESTA survey reveals extent of unemployment fears in recruitment and real estate sectors

12/11/2008

"With unemployment approaching two million, people suffering in the hardest hit sectors should use this opportunity to re-train and apply their expertise to areas of the economy where the UK has a strong competitive advantage such as in our creative sectors."

Recruitment consultants and estate agents are the professions fearing for their jobs the most in the shaky economic climate, new research by NESTA, the National Endowment for Science, Technology and the Arts reveals.

The once-thriving careers have been hardest hit by the credit crunch as businesses put recruitment on hold and the number of jobs available in the UK have been slashed. More than two thirds of people in the recruitment sector feel insecure in their employment, and 56 per cent fear redundancy is on the horizon.

Similarly, 65 per cent of those in the housing industry are worried because estate agents across Britain are struggling to sell houses - only one house is being sold each day and house prices have fallen to 15 per cent lower than 12 months ago.

Jonathan Kestenbaum, NESTA's Chief Executive commented: "With unemployment approaching two million, people suffering in the hardest hit sectors should use this opportunity to re-train and apply their expertise to areas of the economy where the UK has a strong competitive advantage such as in our creative sectors. Doing so will be critical in helping people get back on the payroll".

The poll of 2,000 workers comes at a time when unemployment figures announced today have reached 1.82 million - the highest level since 1998 and a number of large corporates have announced job cuts: Virgin Media are to cut 2,200 jobs as part of the merger between NTL and Telewest, Yell announced 1,300 jobs cuts, Taylor Wimpey announced 1,000 job cuts and GSK announced it would be closing a pharmaceuticals plant in Dartford with 620 job cuts.

Vodafone also plan to cut costs by £1 billion, which is likely to mean 10,000 job losses in the UK.

Other job areas that the survey revealed to be at risk are:

61 per cent of finance sector workers are worried about their future as banks struggle to stay afloat, and the Government is being forced to rescue them from collapse.

64 per cent of call centre staff are worried about keeping their jobs as companies resort to employing staff abroad to save money.

59 per cent of British engineers are feeling vulnerable and worried about the future of their careers

A third of telecommunications workers claim their company put a freeze on pay rises months ago, and everyday they turn up to work fearing the worst.

Other findings in the survey include:

26 per cent of British workers have experienced job cuts and redundancies in their company over the past three months.

Four in 10 people admit they are working harder than ever before to keep their jobs; a third of these are working longer hours in a bid to look keen, and 20 per cent are taking work home.

One in five companies across the UK has frozen pay rises, and the same numbers have ditched bonus schemes.

Nineteen per cent of workers believe their employer is struggling to make ends meet at the moment, but 31 per cent say their boss is being tight lipped about the financial state of the company.

In contrast, 39 per cent of people say their boss has been putting the pressure on them to perform well at work.

MOST WORRIED PROFESSIONS

1.Recruitment consultants (67 per cent)

2.Estate Agents (65 per cent)

3.Call centre staff (64 per cent)

4.Bankers / Finance workers (61 per cent)

5.Engineers (59 per cent)

6.Caterers / Cooks (57 per cent)

7.Accountants (56 per cent)

8.Sales staff (55 per cent)

9.Marketers / Advertisers (54 per cent)

10. Lawyers (52 per cent)

For further information, please contact Catherine Anderson in NESTA's Press Office on 020 7438 2609 or Catherine.Anderson@nesta.org.uk

Notes to editors

NESTA is the National Endowment for Science, Technology and the Arts - a unique and independent body with a mission to make the UK more innovative. It invests in early-stage companies, informs and shapes policy, and delivers practical programmes that inspire others to solve the big challenges of the future.