CBI predicts rise in unemployment

16/09/2008

Unemployment will hit two million by the end of 2009, a business group has predicted.

The new figures, released by the Confederation of British Industry (CBI), forecast a growth in the number of people out of work of 450,000 over this period.

This would also mean that unemployment grows to its highest level since Labour took power in 1997.

The global economic downturn, which began with the onset of the credit crunch last summer, was blamed for the trend.

Financial services and construction are sectors likely to be particularly heavily hit.

Richard Lambert, director-general of the CBI, said: "Having experienced a rapid loss of momentum in the economy over the first half of 2008, the UK may have entered a mild recession."

Other groups predicting a recession in the UK include thinktank the Organisation of Economic Co-operation and Development and the European Commission.

Tags; Young Family Finances, Job loss,

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