Britain warned that '09 will see 600,000 layoffs

LONDON -- More than 600,000 people in Britain will be laid off in 2009, making next the worst year for job losses in 18 years, a leading personnel group forecast Monday.

The Chartered Institute of Personnel and Development's annual report predicted that, including people who lose their jobs for other reasons such as contracts ending, the country's economic slowdown will push 1 million more people into unemployment by the end of next year than were out of work in October of this year.

That would bring the total number of unemployed in Britain up to 2.8 million, and would make 2009 the worst year for job cuts since 1991, the institute said.

"This time last year, in the face of some skepticism, the CIPD warned that 2008 would be the U.K.'s worst year for jobs in a decade," said the institute's chief economist, John Philpott.

"It was, but in retrospect it will be seen as merely the slow-motion prelude to what will be the worst year for jobs in almost two decades," he added.

Britain's unemployment rate is currently just under 6%, according to the latest official figures, published in October.

The personnel institute's warning about job losses in 2009 came on the same day that yet another British retailer looked set to fall into administration — a form of bankruptcy.

British children's clothing retailer Adams Childrenswear, which employs around 2,000 people, is expected to be placed in the hands of administrators at PricewaterhouseCoopers on Monday, according to company spokeswoman Ginette Gisborne.

Last month, 99-year-old general store Woolworths went into administration, and its administrators have said that all its stores will close by Jan. 5 — resulting in the loss of 27,000 jobs — unless a last-minute buyer can be found.