Thursday, 10 June 2010

Especially bleak

Welcome back to the Eighties. Remember Maggie's recession and the three million jobless?

Government spending cuts will push UK unemployment up from its current 2.5m to almost 3m, a report has warned.

Deficit reduction would also stall recovery in the jobs market, employment group the Chartered Institute of Personnel and Development (CIPD) said....

The CIPD had earlier suggested that the jobless total would reach 2.65 million this year.

But chief economic adviser John Philpott said he had now revised up his forecast, saying unemployment would climb to 2.95m in the second half of 2012, and remain close to that level until 2015...

"Although tough fiscal medicine is unavoidable and may boost the UK's long-run economic growth and job prospects, reliance on cuts in public spending rather than tax increases as the primary means of cutting the deficit makes the short-term outlook especially bleak for those individuals and communities already suffering the greatest hardship in society.

"Given what we know historically about the way in which the social burden of unemployment and stagnant average income growth is shared across individuals and communities, the prospects for those already suffering the most disadvantage seem particularly bleak."

Via the BBC.