Unemployment could reach three million
The Chartered Institute of Personnel and Development (CIPD) has said that government spending cuts could raise employment levels from 2.5 million to nearly 3 million. Cuts in the public service must be made to avoid sharp tax rises. Chief economic adviser John Philpott has estimated that half a million jobs are likely to be lost in the public sector in the next two years and the unemployment levels are likely to stay at the 3 million mark until at least 2015. Although these job cuts and other public spending cuts are needed for economic growth, the short term opportunities for people who are already at a disadvantage from being unemployed are not likely to improve, and these people especially are likely to face even tougher times over the coming years.
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