UK facing 'jobless recovery'

07/10/2009

British workers will still face the threat of job losses even after the recession is over - with City bankers feeling some of the sharpest cutbacks.

A new report from the International Monetary Fund (IMF) suggests that job creation might remain a problem, even after the recession is over.

Recent forecasts from groups including the National Institute for Economic and Social Research suggest that the UK economy could already have returned to growth, following its credit crunch-induced downturn.

However, unemployment is predicted to continue to rise until 2010, going from just under 2.5 million to over three million.

"The financial crisis has hit the banking sector particularly hard in the United Kingdom, which typically is associated with a slow recovery," the IMF said.

"A jobless recovery could be on the cards for the United Kingdom."

Job losses in the City have borne the brunt of the cutbacks in the recession so far.

A report from the Confederation of British Industry and accountants PricewaterhouseCoopers suggested that as many as 60,000 more financial services jobs could go over the next year.

Tags; Current UK Economy, Young Family Finances, Recent Graduate Debt,

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