GUERNSEY must be careful if it is to avoid significant job losses next year, according to the Chamber of Commerce.
Its president, Paul Luxon (pictured), said the business community would have to keep a close eye on the effects of recession on the Continent and in the UK during the next year.
‘We have to make sure we do not overreact, but we cannot be complacent either,’ he said.
‘We have to be vigilant and optimistic, but not complacent.’
A report released by the Chartered Institute of Personnel and Development this week claimed that at least 600,000 jobs would be lost in the UK during 2009.
It added that even those who escaped redundancy would face pay freezes in what it predicted would be ‘the UK’s worst year for jobs in almost two decades’.
Mr Luxon said there was a confidence issue in Guernsey.
‘There have been some job losses here,’ he said.
‘We have seen a fair amount of resilience, though, but we have not been immune to the impact of global economic turmoil.’
He said there was currently no evidence that the situation locally would become worse than during the second half of 2008.
‘Our unemployment level is still considerably below one per cent, so there has not been a significant increase.
‘It is very early to tell what the full impact will be for Guernsey in terms of the UK and European recession. The business community will be watching the situation very carefully in 2009 for any worsening trends.
‘I think businesses will have to think of initiatives to stimulate growth and government can play a part too, of course.
‘But I think what we have got to recognise is that the world economy, and Guernsey’s, six months ago was on an incredible high and what has happened is that extreme external circumstances have affected that.’
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Article posted on 31st December, 2008 - 9.12am
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