Unemployment warning issued by CBI

17/11/2008

Business leaders have issued a stark warning that unemployment will rise in the UK.

The Confederation of British Industry (CBI) said that job losses would hit 2.9 million in 2010.

This is 900,000 higher than the current unemployment level.

According to the group, the UK economy will shrink by a bigger-than-expected 1.7 per cent next year.

Reflecting the recent dramatic worsening of the credit crunch, the CBI was predicting negative growth for 2009 of just 0.3 per cent as recently as two months ago.

John Cridland, CBI deputy director-general, said: “What is clear is that the short and shallow recession we had hoped for a matter of months ago is now likely to be deeper and longer lasting.

"The fast-moving and global nature of this crisis means it is impossible to look far ahead with any certainty."

According to latest government figures, the economy shrank by 0.5 per cent over the three months to September.

The UK is expected to enter full-blown recession by the end of the year.

Tags; Young Family Finances, Job loss, Recent Graduate Debt,

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