Today's Coming Crisis Movie

Sunday, February 13, 2011

UK Unemployment will not fall for two years, warns CBI

The business lobby group expects Britain’s unemployment rate to jump from 7.9pc last year to 8.4pc this year and remain unchanged in 2012, as private sector recruitment struggles both to offset public sector job losses and accommodate new entrants into the labour market.

Official forecasts from the Office for Budget Responsibility (OBR) are for UK unemployment to peak at 8pc this year and fall to 7.7pc in 2012.

John Cridland, CBI director general, added that he still believes the private sector will be able to deliver enough jobs to offset the 410,000 public sector job cuts over the next five years, but that the increase in employment will be skewed towards the later years of the austerity programme.

“There are issues about regional employment and timing, but overall we still believe it is an achievable task,” he said. The CBI does not produce forecasts more than two years ahead.

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