Unions say 250,000 jobs at risk

Union leaders say 250,000 jobs are at risk as the UK's manufacturing sector officially slips into recession.

Official figures from the Office for the British National Statistics show manufacturing output rose 0.3% in June, but fell by 2% overall in the second quarter of the year.

The fall was the second consecutive quarter of decline, which is the technical definition of a recession.

The Transport and General Workers Union says the "dismal" figures show urgent action is needed to boost investment and tackle productivity.

National officer Peter Booth said: "The Government should take action to improve capital allowances for all new machinery, equipment and research and development."

He said 250,000 manufacturing jobs are at risk over the next two years unless there is more investment in manufacturing.

Sir Ken Jackson, general secretary of the Amalgamated Engineering and Electrical Union, said: "These figures confirm our fears about the growth of a two-speed economy in Britain. Construction, aerospace and pharmaceuticals are continuing to do well but other manufacturing sectors clearly are not. They must hold their nerve."

Roger Lyons, general secretary of the Manufacturing Science and Finance Union, called on the Government to convene an urgent meeting of the manufacturing task force, which includes union and business leaders.

Mr Lyons said the group should draw up an action plan to boost manufacturing and discuss ways of averting more job losses.

Manufacturing output fell in the first quarter of the year by 0.7% and the sector has continued to suffer from the impact of the global slowdown.

City analysts had been forecasting a further fall in June of at least 0.2%, but the ONS says electrical, optical equipment and computer output have all edged up.