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CIPD revises jobless tally forecast
HR News |
31/12/2009
Unemployment in the UK will peak at 2.8 million next year, experts have predicted.
The Chartered Institute of Personnel and Development (CIPD) says "tough times" are ahead for the labour market, with the level of joblessness set to increase over the first half of the year.
However, the organisation's forecast is more positive than many employment experts had predicted, with CIPD itself previously warning that unemployment could reach 3.2 million.
Dr John Philpott, chief economic adviser to the CIPD, said he thought the labour market was "a lot more flexible" than in the past.
He added: "The big question for 2010 is how long that can be sustained. A slower than expected recovery or stronger earnings growth would threaten to raise peak unemployment to at least three million.
"The impact on jobs of planned cuts in public spending and tax increases, especially the one per cent hike in employers' National Insurance contributions from April 2011, is expected to be felt after the peak in unemployment."
Last week, the Confederation of British Industry predicted that the UK would emerge from recession during the fourth quarter of 2009.
Posted by Stephen Wilkinson
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