Young consumers' confidence drops as job fears mount

Continual news of job losses has led to a decline in confidence among 16-29-year-olds, with graduates seeing little chance of an easy ride into their career of choice, particularly those aspiring for a job in the financial sector.

Jobs have been cut on a daily basis across a wide range of industries. Just yesterday entertainment chain Zavvi, energy company E.on, pharmaceutical giant AstraZeneca and City law firm Linklaters all announced they were cutting jobs.

It is not just young people that have seen their morale knocked. UK confidence in general fell again in January, market researchers report, with the overall index from GfK NOP declining by four points.

This compares with the 10 point decline in confidence among 16-29-year-olds.

Confidence in the general economic situation for the next 12 months dropped as increasing numbers of politicians and pundits warn of a deep and protracted recession. With scant returns on saving accounts, confidence in now being a good time to save money also declined.