Running through the news this morning we spotted that employers are not looking to employ at the moment:

A survey of 700 employers found the balance between those expecting to take on staff in the next three months versus those looking to axe jobs slumped from 41 a year ago to just 2 this time.

The figure was the lowest recorded by the Chartered Institute of Personnel and Development (CIPD), which started the study in 2004.

CIPD chief economist John Philpott warned “the harsh chill of recession” and modest pay increases at best will make this winter the toughest for UK households for almost two decades.

“The year after the impact of the credit crunch was first felt saw the UK labour market move from a state of buoyancy to one of stagnation,” he said.

“We are now at the start of a period of contraction, with jobs being lost, new jobs hard to come by and, as this week’s official statistics are set to confirm, unemployment on an ever sharper upward rise.”

There was also bad news from the CBI, whose own survey showed almost 30% of small to medium sized companies had cut their workforce in the last three months. Only 17% added jobs as demand for UK-made goods weakened at home and abroad.

What we need to remember is that recessions have a pattern. They start with a slow down of sales, this leads to a reducing of new jobs, followed by a reducion in current jobs, followed by a restructure of the business which may lead to the loss of more jobs. The end result though is that new businesses are formed and the growth of new companies starts again – this may lead to a boom in 3-4 years time!

The survey just lets us know where we are in the business cycle.