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Unemployment ‘will peak at 2.7m’

Unemployment ‘will peak at 2.7m’
14 July 2011

A report has claimed that unemployment will peak at 2.7 million in 2012 – lower than previous estimates.

However, the Chartered Institute of Personnel and Development (CIPD) report also claimed that the outlook for jobs would suffer amid weak economic growth.

The report predicted that by 2015 the total number of people unemployed will be around 2.4 million – around the same as current figures. But the estimate is still 800,000 above the levels seen before the recession took hold.

Writers of the report – which came ahead of new unemployment figures – cited the falling prediction on the fact that unemployment was lower than expected in January, February and March.

But the body also revised down its forecast for economic growth in 2011 – going from 1.6% to 1.4%.

The CIPD said the jobs market could take a hit in the event of weaker-than-expected economic growth.

Dr John Philpott, the CIPD’s chief economic adviser, said: “Just as pay freezes and pay cuts protected jobs in the recession, the ongoing pay squeeze is helping our anaemic economy support employment.”

Copyright © Press Association 2011

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