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Government document reveals 1.3 million jobs will be lost following budget 30 June 2010
Kay Murchie (about the author)

Last week’s tough budget is expected to result in the loss of more than one million jobs by 2015, according to a leaked Treasury document.

The Guardian has reported that while there will be an estimated 2.5 million jobs created in the next five years, 1.2 million will be lost in the same period.

Last week, Chancellor George Osborne unveiled tough austerity measures to deal with Britain’s record deficit of £155 billion.

Thirty-nine-year-old Osborne has pledged to wipe out the deficit within five years.

However, an extract from the leaked document said: “100-120,000 public sector jobs and 120-140,000 private sector jobs assumed to be lost per annum for five years through cuts.”

Steven Jackson of Beatmydebt.com commented that many people will fall into financial disaster as a result of job losses. "This is just another indicator that we are in for a very rough ride of it for the forseeable future. If people lose their jobs on this scale then the number of individuals who suffer massive falls in income and are left unable to pay their mortgages and other unsecured debts will be unprecedented. It is extremely worrying" he said.

Many experts raised doubt on the private sector’s ability to create so many jobs in such a difficult economic climate, suggesting the true gain in employment could be yet more modest.

Source: Finance Markets