Almost 1,100 jobs will be lost in the UK architectural profession next year, according to the first edition of the 2002 Plimsoll Portfolio Analysis: Architects, released last week.
The report claims that the industry has been heading for a fall for a period of years and that the recent decline in economic conditions will simply be a catalyst for job losses. It claims that 57 practices are already in 'serious financial distress' with one fifth of practices already making a loss.
The survey analysts claim 56 per cent of the industry will need to cut jobs within 12 months, with the major practices expected to be hardest hit. It claims that one global practice is expected to lose 229 jobs.
The cost of employing people in the industry during the past three years has outstripped profits.
The cost of salaries has increased by 41 per cent compared with sales that have only risen by 26 per cent in the same period.
Some 84 per cent of companies are spending more on salaries than three years ago, yet only 66 per cent of practices are converting this into more profits.
Analysts predict that average salaries for next year will increase from £28,253 to £29,493, a 4.4 per cent climb.However, 42 per cent of companies surveyed admitted that they would not be able to deal with such salary demands.