British unemployment to rise to nearly 3 million

December 29th, 2011 - 4:32 am ICT by IANS  

David Cameron London, Dec 29 (IANS) The unemployment numbers in Britain was forecast to rise to 2.85 million by the end of 2012.

Britain’s total employment is 29.11 million people, of whom 2.64 million were unemployed in November, the highest level for 14 years, the Chartered Institute for Personnel Development (CIPD) said Wednesday.

The repeated cuts in the public sector workforce, introduced by Prime Minister David Cameron’s coalition government would continue to outstrip the private sector’s ability to create jobs, Xinhua reported citing CIPD.

The government’s austerity measures, announced in autumn 2010 and taking large-scale effect from April this year, are the main part of its bid to reduce the near-record level of public sector borrowing, forecast to be 127 billion pounds (about $199 billion).

John Philpott, the chief economic adviser at the CIPD said: “As long as there is a relatively benign outcome to the eurozone crisis we expect the 2012 jobs recession to be milder than that suffered in 2008-9.”

“But unemployment in the coming year will be rising from a much higher starting point, so the British jobs market in 2012 will be weaker than at any time since the recession of the early 1990s,” added Philpott.

Inflation in the British economy is 4.8 percent, and hit 5.3 percent over the summer, well above the target of 2 percent set by the central bank, the Bank of England. Yet, pay is failing to keep pace with the high rate of inflation.

One of the largest British trade unions, the GMB union, said Wednesday that average wages in Britain had fallen by 5.9 percent in real terms between 2007 and 2011 as economic recession reduced the economy and workforce and high inflation outstripped pay rises.

Related Stories

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |

Subscribe