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Unemployment 'will hit 10% by 2015' as public sector cuts take effect 31 August 2010
Steven Jackson (about the author)

Unemployment is set to soar past 10 per cent in the next five years across large parts of the country, a leading economic think tank has warned.

A combination of government spending cuts, sluggish growth in the private sector and weak demand for British exports will push up the jobless rate in the north and in Wales, according to the Centre for Economics and Business Research.

But workers in London and the South-East will escape relatively unscathed as the economy slows.

The North-East, Yorkshire and the Humber, West Midlands, Wales, Northern Ireland and North-West England will suffer most, The CEBR predict.

Public sector cuts to hit regions

The regions were insulated in the recession because Labour bankrolled public sector employment. But the cuts by the coalition will see about 600,000 state jobs go.

Parts of the North and Wales are largely dependent on State employment, with many private sector employers warning they cannot afford to hire new staff. 

The country’s current unemployment rate is 7.8 per cent and has not been more than 10 per cent since January 1994.

There are significant regional differences – it is 6.1 in the South-East and South-West and 9.4 in the North-East. Douglas McWilliams, the CEBR’s chief executive, said: ‘It will take time for the private sector to adjust and fill the vacuum. It is likely to be an agonising transition.’

Source: Mail Online