Unemployment could rise by up to 200,000 next year as Government cuts to the public sector and tough economic conditions impact on the jobs market, research from the Chartered Institute of Personnel and Development warns.
The report is likely to raise fresh concerns over whether the private sector will be able to fill the employment gap following confirmation from the Office for Budget Responsibility last month 330,000 civil servants face redundancy over the next four years, the Daily Telegraph reports.
CIPD chief economist John Philpott told the paper 2011 could be “a worse year for jobs than 2010”.
He said: “Things only have to turn out a bit worse than expected in the wider economy for the jobs situation to weaken, which remains the CIPD’s central forecast.”
Unemployment currently stands at 7.9 per cent, according to the latest figures from the Office for National Statistics. The CIPD forecasts that figure will jump to 9 per cent in 2011 with 80,000 private sector and 120,000 public sector jobs being lost.