PwC report warns of 1m job losses
A report by accountancy firm PricewaterhouseCoopers (PwC) today revealed around one million jobs could be lost in the UK, as a result of the massive spending cuts introduced by the Government.
PwC said around half a million jobs will be lost in the private sector due to the impact on firms supplying the public sector.
The figures come on the same day that the Office for National Statistics (ONS) revealed UK unemployment dipped in the three months to August.
The ONS said unemployment fell by 20,000 in the three month period to 2.448 million. The latest figures means the unemployment rate dipped from 7.8% to 7.7% – the lowest rate since May 2009.
However, unemployment is certain to rise in the coming years due to the cuts introduced by the Government, designed to tackle the spiralling budget deficit.
Meanwhile, PwC said industry sectors which will be worst affected include business services and construction, which will lose 180,000 and 100,000 jobs respectively.
In percentage terms, meanwhile, job losses across the public and private sector are expected to hit 5% of the total workforce in Northern Ireland, and 4% in Wales.
Commenting on the report, Dave Prentis, general secretary of Unison, said it reinforces the warnings over the last few months. “Public spending cuts will damage the economy and will drag the country into a downward spiral.”
Many leading business groups have suggested economic growth will be hampered as a result of the massive spending cuts, which Chancellor George Osborne deems necessary in order to control Government debt.
Experts have warned that the cuts pose a significant threat to the fragile recovery and could push the UK back into a recession.