Sad tidings of gloom

Dec 12 2008 by Andrew Baldwin, Huddersfield Daily Examiner

THE rough edge of recession has already begun to bite.

The chilling forecast of mass unemployment in the months to come does nothing to inspire festive cheer, or the will to embark on a spending spree.

Workers at Woolworths are the latest to face redundancy amid a growing jobs crisis which could see unemployment top three million next year.

New figures next week will show the state of the labour market, with some analysts fearing that the pre-Christmas unemployment total will reach two million.

A pervading gloom is sucking the vitality out of the economy, feeding on itself.

We report in today’s Examiner that many firms could hit financial trouble this Christmas when they get their quarterly rent demand.

Insolvency expert Peter Sargent fears many businesses simply will not have the cash to pay up.

Landlords could pull the plug, forcing firms into closure – a scenario which will force even more people out of work.

Chancellor Alistair Darling is already gambling an unsurpassed one trillion pounds on trying to kick-start the economy.

The banking sector, still to fully pass on falling interest rates to borrowers, has already absorbed billions of that cash injection.

But there are few signs yet that anything has worked. And if Peter Sargent is right, it’s going to get worse.

The question remains: How can governments stimulate recovery, restore that confidence in people to spend again?

We’re all finding it hard to have a very merry Christmas this year, with all the doom about.

But let’s try, shall we?