The thing about useful stuff is: Layoffs in the City will hit "Main St"

Layoffs in the City will hit "Main St" Thursday, October 02, 2008

Image via WikipediaMany conversations I've had in recent days with friends/colleagues that have links to the City have included reference to cutbacks individuals/families are looking at making in their discretionary spending.

These changes are going to be fairly immediate as people seek to conserve cash. Examples provided to me included

fewer nights dining out in restaurants
fewer takeaways
entertaining at home rather than meeting up in pubs
switch to more basic foodstuffs from cheaper stores
cancellation of home services e.g. gardeners, babysitters, cleaners
deferral of household purchases e.g. TVs, Computers
deferral/cancellation of house improvement schemes
reduction/cancellation of satellite services

Whilst these may strike many as indulgences that those people were lucky to have enjoyed for so long given the hardships many families face, they are notable because they will have a direct impact on local businesses and employment. It seems inevitable that some businesses will close as a consequence.

This is on top of the effects from the dramatic slowdown in the housing market that will directly hit not only estate agents, but also removal companies, painters & decorators, interior furnishing stores [curtains, furniture, carpets] and solicitors.

I've also learnt from friends in the Charity sectors that bookings for forthcoming Charity dinners in the run-up to Christmas are considerably down, with expectations for fund raising efforts also diminishing as people cut back. City workers have been a significant source of diners at such events, as well as contributors.

The effects of the dramatic events in the City are going to ripple out quickly and powerfully - be warned.

Labels: recession