Recession will destroy 40,000 UK IT services jobs
They won't come back till 2013
Just under 40,000 UK IT services jobs are expected to disappear by 2010, although then the sector will slowly begin to recover.
In 2008 there were 559,000 people employed in IT services - this is expected to fall to 542,000 this year, 522,000 in 2010 before rising to 528,000 in 2011. Not until 2013, when there should be 573,000 people employed in IT services, will numbers hit the highs of 2008.
The figures, from the centre for economics and business research, showed the business services sector accounted for five per cent of UK GDP and a third of all new jobs created since 1997. Overall there will be 311,000 fewer business service jobs in 2013 than there were in 2008.
Worst performing in the sector is advertising, which was hit early - in 2008 revenue fell 3.9 per cent as recruitment and display advertising dipped.
The impact of falling public finances should not be forgotten - the report reminds us it is one of the biggest consumers of business services.
Ben Read, a managing economist at cebr, said: "Steep drops in business investment, the collapse of the property market and construction industry, upcoming cuts in public sector spending as well as continued difficulty for firms to find capital imply difficult times ahead for this sector."
The press release and additional figures are available for download from here. ®
Sponsored: Today’s most dangerous security threats