UK manufacturers may cut tens of thousands of jobs in 2016

The mill's manufacturing industry is slated to cut tens of thousands of jobs in 2016, despite forecasts for growth in the sector, the UK's Engineering Federation of Employers (EEF) said.

The industry expects modest growth next year after the recession in 2015, but that will not stop businesses from liquidating jobs as they continue to face the effects of weak exports, falling demand for North Sea oil and growing concerns over the Chinese economy.

The EEF expects the industry to grow 0.8 percent in 2016, showing a 0.1 percent contraction in 2015. Most of this growth will depend on the performance of the automotive, aerospace and pharmaceutical industries. And although the sector as a whole could cut tens of thousands of jobs, these industries will sooner or later be able to reverse the trend towards growth in their workforce.

EEF chief economist Lee Hopley noted the collapse of oil and gas activities, the weakness of key export markets and strong sterling as negative. Other disappointments include a decline in construction activity and a breakdown in the steel industry throughout 2015. "This is not doom and gloom, as the transport sector and the rejuvenation of the pharmaceutical industry are driving a boost in UK production," Hopley explained.