The findings of today's report on employment conditions emphasise the mixed fortunes of the economy, with businesses reporting continued job-shedding in every region.

Consumers, shocked by falls in equity and house prices and facing ever more uncertain employment conditions, spent less.

However, it's the changes to employment conditions that really caught the market's attention.

The best approach from central government would be to give latitude to local business needs and employment conditions, within a supporting central framework.

Tough employment conditions built into contracts - including direct labour, local labour and stringent health and safety regulations - are also forcing up prices.