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Roger Bootle of Capital Economics commented: "It has become much more likely that the UK will endure a sustained period of very weak activity … There appears to be very little for companies to be cheerful about."
According to the Daily Telegraph, economists in the City claim that the risk of the UK's current economic slowdown developing into a fullblown recession is dependent on how aggressively firms cut staffing levels to look after their profits from factors such as declining demand and escalating costs.
The Organisation for Economic Co-operation and Development recently said that unemployment in the UK will rise by 100,000 over the next few years.
Last month, the UK unemployment rate increased by 0.1 per cent to 5.3 per cent, according to the labour market statistics published by HRM Guide.
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