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Recession Forces A Million To Work Part-time

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http://www.telegraph.co.uk/finance/finance...-part-time.html

In the past year more than 250,000 extra people who would like to be in full-time employment have found themselves working four days a week or fewer, according to the Office for National Statistics.

This is an increase of more than a third on the previous year, and illustrates the extent to which companies are trying to cope with the downturn by reducing staff hours, rather than just laying them off.

Several major employers have offered staff reduced hours or extended holidays in an attempt to cut costs. Earlier this month, The Daily Telegraph disclosed that BT had offered tens of thousands of its staff the right to take a holiday of up to a year if they took a 75 per cent pay cut.

British Airways has asked many of its staff to work part-time or for free.

When Britain’s biggest accountancy firm KPMG offered employees the opportunity to move to a four-day week, 86 per cent of staff signed up. Many of the City’s biggest law firms, including Norton Rose, are staffed by some part-time workers.

Manufacturers including Ford, Honda and JCB have also asked staff to work reduced hours.

The latest statistics indicate that, between March and May this year, a record 927,000 individuals were working fewer than 30 hours a week because they could not find a full-time job, a rise of 38 per cent on last year. The figures include new employees who have been hired on a part-time basis and existing staff who have been offered reduced hours. Separate figures released last week showed that unemployment had jumped to 2.38 million, with economists predicting it was inevitable that the total would exceed three million, matching the job crises of the early-1990s and 1980s.

This time round, however, the rise in unemployment has been accompanied by more dramatic changes in the labour market, with hundreds of thousands cutting their hours and pay in an attempt to hold on to their jobs.

Others are working well beyond retirement age because their pension pots have suffered from dramatic falls in the stock market.

This can only boost house prices, and it can only boost UK govt tax revenues. The recovery is here, relax people growth will return in 2010.

It's odds on.

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This is one area of earnings most forget about.

It is fine looking at the unemployment stats. They are clearly important. However I think stats like this are far more important. They impact far more people.

Bonuses - Cut

Wage rises - Frozen

Benefits - Cut

Overtime - Slashed.

Hours - Cut

I reckon the number impacted with the effects listed above is in the millions. These people are not going to be looking to spend more on housing. Anytime soon at least.

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This is one area of earnings most forget about.

It is fine looking at the unemployment stats. They are clearly important. However I think stats like this are far more important. They impact far more people.

Bonuses - Cut

Wage rises - Frozen

Benefits - Cut

Overtime - Slashed.

Hours - Cut

I reckon the number impacted with the effects listed above is in the millions. These people are not going to be looking to spend more on housing. Anytime soon at least.[/font]

Absolutely.

Being a potential FTB who has gone from working full-time to now 3.5 day weeks, I'm not going to touch the property market until such time as I'm back to full pay (which may never occur) and house prices fall dramatically.

The "green shoots" bile that's churned out by the media every other day is sickening. Miles Shipside should be held accountable for lying through his teeth.

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Absolutely.

Being a potential FTB who has gone from working full-time to now 3.5 day weeks, I'm not going to touch the property market until such time as I'm back to full pay (which may never occur) and house prices fall dramatically.

The "green shoots" bile that's churned out by the media every other day is sickening. Miles Shipside should be held accountable for lying through his teeth.

The thing is (after 2 years of only doing 3 days a week) I can't imagine ever going back to 5 days a week! Unless, I genuinely enjoyed the job.

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I agree that part time working will not lead to house price increases but it could stop more falls.

As the poster above stated they have gone from 5 days to 3.5 days, a 42% reduction in work and I assume pay.

If this was done by redundancies then 42% of the workforce would be layed off and this would cause people with mortgages to potentially get repossed. If the amount of people that can not afford to pay thier mortgage on a 3.5 day week is a lot lower than the number would be in terms of redundancies then there will not be so many reposessions coming onto the market at distressed prices.

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I agree that part time working will not lead to house price increases but it could stop more falls.

As the poster above stated they have gone from 5 days to 3.5 days, a 42% reduction in work and I assume pay.

If this was done by redundancies then 42% of the workforce would be layed off and this would cause people with mortgages to potentially get repossed. If the amount of people that can not afford to pay thier mortgage on a 3.5 day week is a lot lower than the number would be in terms of redundancies then there will not be so many reposessions coming onto the market at distressed prices.

I agree, but a cut from 5 to 3.5 days a week is a 30% cut e.g. someone earning £100k for a 5 day week, will now earn £70k for a 3.5 day week.

I guess it depends on who is taking the cut. Someone earning £100k without a really massive mortgage might just take the disposable income in return for a better lifestyle, but someone earning £30k might not manage so well.

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I agree, but a cut from 5 to 3.5 days a week is a 30% cut e.g. someone earning £100k for a 5 day week, will now earn £70k for a 3.5 day week.

I guess it depends on who is taking the cut. Someone earning £100k without a really massive mortgage might just take the disposable income in return for a better lifestyle, but someone earning £30k might not manage so well.

If I had my wage cut by 30% I'd certainly have no spare cash and would have to make cuts in spending. Far easier if your already earning a huge wage provided you've not been dump and borrowed to the max.

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This is down to people losing good full time jobs with holidays and pensions and having to take

casualised part time McJobs.

My dad was telling me the other day about his neighbor, he sits at home and the firm rings him up when they need him.

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If I had my wage cut by 30% I'd certainly have no spare cash and would have to make cuts in spending. Far easier if your already earning a huge wage provided you've not been dump and borrowed to the max.

I know many people who have been used to getting serious overtime, reasonable pay rises and nice bonuses every year. For many this has now ended. I think in reality this could be described as a 30% pay cut for many people.

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If I had my wage cut by 30% I'd certainly have no spare cash and would have to make cuts in spending. Far easier if your already earning a huge wage provided you've not been dump and borrowed to the max.

My salary is extremely modest, so a 30% cut is a bit of a killer. Thankfully I'm only repaying a loan I took out for graduate tuiton fees a number of years ago, and I should be able to have that paid off within a year. Had I "invested" in a property, I don't know what I'd do.

I've been lucky - surviving 2 redundancy procedures in the past 8 months. My sector (legal) is one of the vanguard taking the brunt of the financial downturn, so there are absolutely no other jobs out there. I'm clinging to my job for dear life!

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