While some firms in the UK look to redundancies as a way of easing the financial strain during the recession, for the workers affected it is a long journey back to where they were.
Such is the findings of new research from the Globalisation and Economic Policy Centre, based at Nottingham University, which revealed that it will take the average UK worker five years to achieve the salary they were collecting before they lost their job.
Furthermore, when a business closes down, the average employee can expect to lose half of their income during the first year, followed by 15 per cent in the second 12 months and ten per cent in the third.
Dr Richard Upward, who led the research, stated: “The only way many of these workers will recover their current standard of living is by retraining and any measure that can be introduced to re-skill them has to be considered.”
Research by More Than Business has revealed that while deflation has seen operation running costs fall dramatically, many small businesses are still struggling with managing their staffing levels.