New report predicts that unemployment will continue to rise

The Centre for Economics and Business Research (CEBR) have released a report predicting that unemployment will carry on rising in most of the UK for the next five years. Due to a weaker economic outlook everywhere except London, the South East and the East will be affected.

Areas which depend heavily on the public sector for jobs are likely to suffer most. This is because of large cutbacks in Government spending resulting in many job losses. Northern Ireland may be hit particularly hard, where almost a third of the workforce are employed in the public sector.

Scotland, the North East and Wales could also be hit hard. Unemployment in Wales could reach 10.5 percent by 2016 which is the greatest it has been since records began in 1992. In Yorkshire nearly one in ten of the available workforce is unemployed. The unemployment rate for the whole of the UK looks set to rise to 10.7 percent by 2016, its’ highest since 1995.

The total number of jobless did fall slightly to 2.65 million last month but with more public sector job losses on the way, this figure is almost certain to increase in the coming months. The only bright news in a very gloomy report is that the job market in the South East is likely to remain buoyant.