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Unemployment To Hit 17-Year High In 2011, Warns Cipd

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http://www.telegraph.co.uk/finance/jobs/8224054/Unemployment-to-hit-17-year-high-in-2011-warns-CIPD.html

As many as 200,000 jobs could be shed in 2011 in what is predicted to be a "worse year for jobs" in 17 years, an analysis revealed.

Raising fresh doubt over the pace of the UK's economic recovery, a report by the Chartered Institute of Personnel and Development (CIPD) warned 80,000 private sector and 120,000 public sector jobs will be lost next year.

Unemployment is forecast to rise from 7.9pc to 9pc, or 2.7m, in 2011 as the private sector struggles to create jobs to offset wide-scale state redundancies.

Any jobs that are generated are likely to be part-time or temporary, while workers can expect to endure below-inflation pay rises of just 2pc, the CIPD's economic forecast, published today, showed.

Revised figures from the Office for Budget Responsibility last month showed that the number of civil servants facing redundancy over the next four years is 330,000, some 160,000 less than predicted before October's Comprehensive Spending Review. A new series of forecasts to 2015 said the economy is consistently stronger than thought.

However, the CIPD warned even with the "plausible" scenarios, "2011 will overall be a worse year for jobs than 2010". John Philpott, chief economist, said: "Things only have to turn out a bit worse than expected in the wider economy for the jobs situation to weaken, which remains the CIPD's central forecast."

He said that if the "unexpectedly strong" progress made in 2010 was sustained, the jobs market "will be able to cope" without any significant rise in unemployment. "Nonetheless 2011 will probably feel like another year in the economic doldrums, rather than the start of a return to prosperity," he said. "Add in the possibility of employment disputes and social discontent arising from the fiscal squeeze and public sector job cuts, and it's not hard to conclude that 2011 could prove to be a troubled year all around."

The CIPD forecast follows a report by Totaljobs.com, out yesterday, which warned unemployment is expected to rise in 2011 as the VAT increase hits employer and consumer confidence.

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  • 276 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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