The shock news this week that nearly 400 jobs could be lost in Bath is a massive body blow to the city's economy – and most importantly of all, to the workers and the families directly affected.

The week began with news of 85 potential job losses throughout 2010 at Wessex Water and then the situation got even bleaker yesterday when we heard the terrible news that Helphire was to possibly shed a further 300 jobs.

Both Wessex Water and Helphire are key Bath employers and the loss of more jobs at these high-profile firms is a painful illustration at just how fragile our economy really is.

At the moment all our thoughts are with the individuals and their families who may face the difficult task of trying to find new work in an economically depressed arena. We can only hope that both companies, and all the official agencies in the area, will do everything they possibly can to help everyone caught up in this awful situation.

Of course, when something bad like this happens there is always a tendency for people to play the 'blame game' but in this instance it is the economy itself which is firmly in the dock.

Politicians may talk of having seen green shoots of recovery – and here at the

Chronicle

we have reported definite signs of improvement – but the devastating effect of the world economic crisis is still showing no sign of reducing in any meaningful way and the unpredictability of the economy means risk is never far away.

These potential job losses will therefore cause a lot of concern within the Bath economy about the 'after shock' that may follow. It may well have an affect on local business confidence and all the evidence shows that when people lose their jobs at a big local company, many other firms who supply them or provide services to employees suffer as well. Allied to this, of course, the cost to the council could be increased as benefits rise.

For the time being, however, all our thoughts should be concentrated on the potential (innocent) victims of this as they now face an uncertain and challenging year ahead.

Our thoughts and best wishes go with them all.