new forecast Unemployment to hit 2.7 million

new forecast Unemployment to hit 2.7 million ; Unemployment could soar by 200,000 to 2.7 million – or 9% of the population – according to the annual forecast from the Chartered Institute of Personnel and Development (CIPD). The figures represent a starker picture than those of the Office for Budget Responsibility (OBR). The increase is expected to come from public sector job cuts of around 120,000 and the remainder from the private sector.

Unemployment currently stands at 7.9%, according to the latest figures from the Office for National Statistics. The CIPD forecasts that figure will jump to 9 per cent in 2011 with 80,000 private sector and 120,000 public sector jobs being lost.

Last month, the OBR confirmed that 330,000 civil servants face redundancy in the next four years. This is 120,000 less than expected when the cuts were first announced.

John Philpott, the chief economic adviser at the CIPD told the Daily Telegraph that if the strong progress made this year is to continue, the jobs market could cope with public spending cuts and tax rises without any significant rise in unemployment, but this was the most optimistic scenario.

He added: “However, things only have to turn out a bit worse than expected in the wider economy for the jobs situation to weaken,” he said. “Nonetheless 2011 will probably feel like another year in the economic doldrums, rather than the start of a return to prosperity.”

New private sector jobs will be either part-time or temporary, the institute said, with any pay rises likely to be below inflation at 2%. For the latest updates PRESS CTR + D or visit Stock Market news Today

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