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Government Spending Cuts Will See A Million People Lose Their Jobs, Says Pwc

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http://www.telegraph.co.uk/finance/jobs/8060539/Government-spending-cuts-will-see-a-million-people-lose-their-jobs-says-PwC.html

Almost half a million people in the private sector will lose their jobs as a result of public spending cuts, new research suggests. The number is the same as the Government expects to cull from the public sector by 2015.

For parts of the UK, it will mean one in 20 people lose their job over the next four years as a result of the £83bn public spending cuts to be announced by the Chancellor next week.

Private sector output could be slashed by £46bn, or 2pc of the total, consultants PricewaterhouseCoopers (PwC) said. This would not be enough to push the economy back into recession, it said.

However, it is forecasting, that the private sector will only generate around 1m new jobs over the next four years in areas such as outsourced business services and social care.

This is far fewer than the 1.6m new jobs predicted by the independent Office for Budget Responsibility in June.

Of the industry sectors most exposed to the spending cuts, PwC said business services will shed 180,000 jobs and construction 100,000.

Job losses across the public and private sector are likely to hit 5pc of the total workforce in Northern Ireland, and 4pc in Wales, Scotland and the North East, although overall more jobs will be lost in London and the South East because their economies are larger.

UK-based manufacturers of leather goods and footwear, electronic components, weapons and ammunition and office machinery and computers will all be hit hard by the cuts, PwC predicted. Nick Jones, PwC director, said: “Businesses have been scenario planning and making contingencies but now it is going to become very real.”

Looks like govt spending has created a huge malinvestment in capital then? We borrowed the money for these jobs now we have pay back time.

Still at least we saved the bankers.

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Duplicatus postus!

The bit I found amusing was:

"This would not be enough to push the economy back into recession, it said."

The jobless recovereh is locked in it seems.

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However, it is forecasting, that the private sector will only generate around 1m new jobs over the next four years in areas such as outsourced business services and social care.

Mmmm outsourcing services is not generating new jobs, in fact the purpose of outsourcing is to cut costs but cutting jobs, pay and conditions.

Privatising public services will result in fewer jobs.

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Mmmm outsourcing services is not generating new jobs, in fact the purpose of outsourcing is to cut costs but cutting jobs, pay and conditions.

Privatising public services will result in fewer jobs.

What surprises me is it seems like a huge number of people will lose their jobs and yet they are only announcing what seems to be a relatively small % of the overall budget being cut. 83 billion wasn't it, that's only 15% or so.

15% cut and a million jobs lost, we really DO have a phoney economy. I don't even believe that 1 million figure, it's just including the governments outsourcing programmes to private companies.

What about all the THIRD party jobs that will be lost as a result of the reduced spending power of up to 5% of the workforce?

This cut is going to coincide with the normal job losses of the recession once it properly hits so we could see another 2 million people lose their jobs on top of the one million. Unemployment could hit an overall target of 15%, maybe as high as 20-25% for 18-25 year olds.

This is going to be the worst recession in history unless the government print their way out again but they will just be postponing the inevitable. It seems they are not going to do something to prop up house prices after the 3.6% fall in September either so I expect a huge reduction in confidence in the property market so Council Dweller's 25% prediction for the next 12 months probably isn't far off.

Then maybe 50% overall drop in house prices for it to reach the bottom in the depth of the recession, combined with a 50% drop in our currency over the same period which will probably be a decade. UK property will likely crash 80% in value between a sterling and property price crash. Great for people holding gold or the right foreign currencies/ investments.

Edited by Saberu

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This is going to be the worst recession in history unless the government print their way out again but they will just be postponing the inevitable. It seems they are not going to do something to prop up house prices after the 3.6% fall in September either so I expect a huge reduction in confidence in the property market so Council Dweller's 25% prediction for the next 12 months probably isn't far off.

Then maybe 50% overall drop in house prices for it to reach the bottom in the depth of the recession, combined with a 50% drop in our currency over the same period which will probably be a decade. UK property will likely crash 80% in value between a sterling and property price crash. Great for people holding gold or the right foreign currencies/ investments.

We can't print our way out of this mess, if we try we'll just create an even bigger bust than the one we are facing now.

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  • 149 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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