Unemployment 'to peak at 2.8 million' in 2010
Unemployment 'to peak at 2.8 million' in 2010
Wednesday 30th December 2009
Unemployment in the UK will peak at 2.8 million next year, business forecasters have predicted today.The Chartered Institute of Personnel and Development (CIPD) said there were "tough times" ahead for the labour market, as unemployment continued to rise for the first half of 2010.
The forecast from the CIPD is more positive than many experts had predicted, even reassessing the business group's own earlier forecast that unemployment could reach 3.2 million. Currently the number of people out of work in the UK stands at 2.49 million.
While the research from the CIPD spelled good news in terms of job losses, the news for those in work was not quite as positive, with most expected to see below-inflation pay rises. While inflation is expected to be around three per cent, pay is only expected to rise by two per cent.
Dr John Philpott, chief economic adviser to the CIPD, said: "I think the labour market is a lot more flexible than it was in the past.
"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."
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