Redundancies sweep the country
Britain was hit by a fresh wave of redundancies hours after Gordon Brown introduced a £500m plan to prop up the faltering jobs market.
Slashed: The latest round of mass redundancies across the UK have been announced
In a bleak day for workers, firms including digger giant JCB, Wickes owner Travis Perkins and frozen food firm Findus announced a raft of job losses. More than 5,000 cuts were made, adding to a jobless tally that at the last count stood at 1.8m.
The British Chambers of Commerce has previously warned that unemployment will breach the 3m mark next year. It today releases a survey of 6,000 businesses revealing bosses are laying off 'vast numbers' of workers.
At his 'jobs summit' the Prime Minister pledged to help 500,000 people into work or training.
Mr Brown wants to offer employers a 'golden hello' of £2,500 if they take on those who have been on the dole for at least six months.
He will also set up 75,000 training places for the long-term unemployed and offer funding for jobless people to set up businesses.
But business leaders, including BCC director-general David Frost, criticised the plan arguing Mr Brown should have acted early to prevent job losses rather than waiting until the axe fell.
He suggested the UK should revisit 1980s-style programmes that paid employers to retain workers on shorter working weeks.
Mr Brown could also be forced to introduce job creation schemes, putting the jobless to work cleaning parks and refurbishing public spaces, warned John Philpott of the Chartered Institute of Personnel and Development.
He said: 'I would consider anything that might save or create some jobs. The government needs to assess what gives them the best bang for their buck.'
America last year suffered its worst job losses since the Second World War, and many economists fear Britain is headed in a similar direction.
The question is whether the state should intervene early to prevent firms from wielding the axe, or whether it should focus efforts on moving redundant workers back into jobs or training once they have been laid off.
Bosses say the quickest way to curb the losses would be to tackle banks' continued unwillingness to lend.
In the firing line: Unemployment advice
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JCB pointed the finger of blame directly at the lenders as it announced 684 job cuts. Chief executive Matthew Taylor said: 'Customers are still struggling to buy machines because of a lack of available credit.
'This unprecedented situation needs to be addressed with some urgency so that confidence and stability can return.'
The lending drought is also taking its toll on builders' merchant Travis Perkins, which said it cut more than 1,400 posts as it confronts a possible 25% fall in sales volumes.
And Newcastle Productions, which makes Findus frozen foods, went into administration threatening 420 jobs.
Logistics firm Wincanton could axe 875 after saying it may close two of its depots, and 130 employees of Hull-based Honda dealership DeVries face an uncertain future after the firm went into receivership.
Meanwhile, 367 jobs are to be lost at struggling china and crystal firm Waterford Wedgwood.
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