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Inflation targets threaten jobs
Wednesday, 21 May 2008
Life after graduation
Up to 60,000 jobs could be on the line as the government attempts to meet inflation targets, it was warned yesterday.
A report published by the Ernst & Young Item club has claimed high food and energy costs will push inflation up by 1.7 per cent, causing the Bank of England to raise interest rates.
With economic growth set to suffer if the plans go ahead, many graduates could encounter employment difficulties upon leaving university this summer.
Peter Spencer, chief economic adviser to the Item club said he believed it was now time to look at different ways of specifying inflation targets.
The Association of Graduate Recruiters annual survey published in 2007 predicted little market slowdown in graduate recruitment during 2008, with half the employers questioned expecting similar numbers of graduates to be taken on by firms this year as last.
However, economic concerns caused by the credit crunch and rising costs have caused many employers to adopt more conservative recruitment strategies.