The CBI warned yesterday in its survey of regional industrial trends that manufacturing employment was likely to fall further this year.
The survey, by the CBI and Business Strategies Limited shows that business confidence is either level or falling in most of the UK, with the South West, West Midlands and North West suffering more than most. Only Wales registered a slight increase in confidence.
Hann-Ju Ho, a senior economist with Business Strategies said, "The outlook for manufacturing employment remains bleak. Generally weak demand, falling output and tight profit margins have all contributed to the shedding of manufacturing jobs in recent months. There is clear evidence that manufacturers are improving productivity to compete with imports and the export market. They are doing this by cutting staff, and this is expected to continue."
Employment estimates, based on the survey, forecast jobs in manufacturing falling in seven of the 11 regions in the third quarter of this year. The largest percentage falls are expected in the North West and Wales. In contrast to the national picture, manufacturers expect to take on staff in Scotland and Northern Ireland and expect employment to remain relatively stable in the North East and West Midlands.
