Over 5,000 companies in England and Wales have gone into liquidation during the second quarter of 2009 according to official figures released today.
The number of companies going into liquidation has grown by a massive 39.1% over the same period in 2008, while the number of unemployed rose by 281,000 in the second quarter, the biggest quarterly increase since 1971 when records began.
The jobless rate stands at 7.6% – it’s highest in over a decade, with labour market ‘experts’ predicting a return to the Thatcher days of one in ten out of work by the end of the year.
Despite the many, so called experts, predicting the end of the financial crisis, we continue to see the number of casualties increasing on a daily basis. Making credit more freely available may serve a purpose but for many businesses finance is just one of many problems.
Many companies have survived the horrors of the last twelve months by making cutbacks and shoring up finances, but now lack the resources to continue. We are far from out of the woods, as the market contracts further business becomes more scarce and competition fiercer.
These are still desperate times for the economy and many more businesses will bite the dust before we see any glimmer of recovery.
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