Gloomy outlook for region as jobs disappear

The Lloyds TSB report for Yorkshire and the Humber claims more jobs have been lost since July than at any other point over the past two years, alongside a decline in business activity among the private sector.

The damning findings have stoked fears that the country could be heading for a double-dip recession, with Yorkshire bearing the brunt of the impact.

Martyn Kendrick, area director for Lloyds TSB Commercial in Yorkshire and the Humber, said it showed that the recovery in the region’s private sector went into reverse during August.

“Firms commented on weaker client demand and uncertainty regarding the economic outlook,” he added.

“Meanwhile, the survey does not bode well for output in the months ahead, as new business stagnated during August and backlogs of work fell sharply in the region.”

Charlotte Britton, West Yorkshire branch chairman of the Institute of Directors, said: “We already have an L-shaped economic recovery and the hit to business and consumer confidence over the summer risks a slip back into recession, which could have dire fiscal consequences. It’s worrying to see that the decline in staffing levels in Yorkshire was the strongest across the UK.

“Listening to our members, they are certainly feeling uncertain about the economic outlook, with some coping better than others at responding to that.”

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