Report predicts sector slowdown

Slowdown in the UK economy could cost 2,875 jobs in the PR industry, according to a new report.

Business analysts Plimsoll Publishing surveyed 982 agencies and concluded that up to 344 will need to reduce staff ‘in some form or other’.

This need is being driven by a combination of declining fees at around a third of agencies, and an expected increase in salaries.

If wages rise next year by four per cent to an average of £40,800, then 35 per cent of companies will be unsustainable, the report predicts.

However, The Bell Pottinger Group, Cow PR and The Communication Group were among those named as having ‘excellent’ fee income growth, described as being ‘well placed to weather any slowdown in the economy’.

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