Economist warns: Recession and job losses likely
Mon 21 Jul 2008 at 3:41 PM
A leading economist has warned the UK is heading for recession and should expect thousands of new job losses.
Professor David Blanchflower, member of the Bank of England's interest rate committee said the UK could be in a worse position than even the US.
"I think we are going into recession and we are probably in one right now," he told the Guardian.
He argued for interest rate cuts and suggested the Bank worry less about inflation, which he believes is only temporary.
In his estimation, unemployment could reach seven per cent and force several thousand more out of work.
Currently, the job market remains fluid with several new vacancies for administration jobs in Manchester and work available in call centres in major cities.
Prof Blanchflower has been voting for interest rate cuts for nine months, he told the paper: "Monetary policy has been far too tight for too long."
