creditcrunchnews

As the credit crunch worsens, the world slips further and further into recession and companies and individuals around the world tighten their belts, retreat to a safe distance and prepare to wait it out, there have been thousands of job losses in all industries around the globe.

Banking Job Cuts

Being the epicenter of the storm, it’s no surprise that credit crunch news sites have abounded with stories of top executives getting the axe.

Not only are banks scrambling to come to terms with bad debt caused by consumers who simply can’t pay, the tighter controls they’ve had to implement on new loans has meant that new business is scarce, if not non-existent.

Big names like Barclays, Bear Stearn, Merrill Lynch and Citigroup are just a few of those who have let former top executives go under the strain.

Vehicle Manufacturers

Another area of concern is vehicle manufacturers. While stories of high profile resignations have been less so than in the banking sector, this is nonetheless one of the hardest hit industries, along with property.

Globally, thousands of jobs have been sacrificed in order to keep these companies afloat and since credit granting policies are unlikely to improve any time soon, that looks set to get worse.

It’s not only those at lower levels that are suffering though. Jaguar Land Rover, producer of some of the world’s premier luxury automobile brands has announced that management increases have been deferred to October 2009, and bonuses for the year will be non-existent.

Property Feeling the Pinch

With recent reports from large mortgage companies shedding huge numbers of staff in response to the worsening credit crisis, one would hope the bad news ends there.

Then there are high profile, big budget projects, like Norman Foster’s planned 600m high Russia Tower in Moscow where work had already begun that was scrapped due to a lack of funding.

The property sector is definitely hard hit though, at every level. Estate agents, unable to sell houses are distressed, not to mention the homeowners who have watched their properties devalue!

Then again, ordinary construction workers are probably the hardest hit. With very little happening in construction globally, they are the ones most likely to take the first knock when the time comes for job cuts.

Retailer Scaling Back

Store closures by major retailers are a sure fire sign that the economy is in serious trouble and with reported festive season earnings as low as 1.6 percent above average, it’s clear that belts are tightened.

This affects the retail industry directly, but also impacts their suppliers and we are likely to see a lot more job losses in many sectors as a result of this new breed of cautious consumer. Whereas before, caution was thrown to the wind for Christmas, credit cards were maxed out and spending was the name of the game. This year, it seems, we all stayed home and saved our money, which does not bode well for retailers at all.

All in all, it seems no industry is safe - when these stalwarts of any economy start showing the cracks, it’s only a matter of time until every other industry and sector are affected.

The only good news I can see is that once we’ve all made it through this, battered and bruised though we may be, the likelihood is that there will be a lot more scope for new entrants into the market.

All that we can really do is watch as the fallout from the credit crisis escalates, bide our time and wait for opportunity to once again come knocking.