Capital Economics issues dire unemployment warning

17/04/2009

Unemployment could rise by another 1.5 million over the months to come, shock new figures from a Capital Economics expert show.

A persuasive trend for small firms going out of business and laying off staff in the recession is likely to push the jobless total up, according to the economist.

Latest government figures show that 2.03 million Britons are unemployed - the highest total measured on the survey for over a decade.

Meanwhile, official data also found that the UK officially entered recession at the end of 2008 and many experts have forecast that recovery will only begin at the end of this year at the earliest.

Jonathan Loynes, chief European economist for Capital Economics, added that increased joblessness would last even longer.

"I suspect we'll see unemployment rise for several years at least and we suggested that the widest measure of unemployment will rise to about 3.5 million - so that's another 1.5 million on top of what we've already seen," he said.

"In terms of the impact on small businesses, it's got to be negative and a lot of small businesses will undoubtedly go bankrupt."

Tags; Young Family Finances, Job loss, Credit Card Lifestyle, Recent Graduate Debt,

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