Unemployment set to rise in 2012 suggests CIPD

Unemployment will rise further in 2012 peaking at 2.85m in 2013 from 2.64m currently- says the Chartered Institute of Personnel and Development (CIPD).Unemployment set to rise in 2012 suggests CIPDThe human resources industry body warns the private sector will fail to offset the 120,000 job losses in the public sector in 2012, but it sees no sign of widespread private sector redundancies.

The jobless rate is expected to hit 8.8% in 2012, from 8.3% most recently.

Government policy should help youth and long-term joblessness, the CIPD said.

“As long as there is a relatively benign outcome to the eurozone crisis we expect the 2012 jobs recession to be milder than that suffered in 2008-9,” said John Philpott, chief economic adviser at the CIPD.

“But unemployment in the coming year will be rising from a much higher starting point, so the UK jobs market in 2012 will be weaker than at any time since the recession of the early 1990s.”

In response, a spokeswoman for the Department for Work and Pensions said: “There has obviously been an unwelcome increase in unemployment since the summer but the latest unemployment figures show some signs that the labour market is stabilising.

“The number of people in employment is higher than last month’s published figure, and the number of unemployed people is steadying.”

She added that “the increase in those claiming Jobseeker’s Allowance has slowed and our welfare reforms are having a positive impact, with overall benefit claimant numbers falling by around 40,000 in the last 18 months.”

The CIPD’s John Philpott points out: “In a weak economy where jobs overall are not rising, any benefit to young people is to the detriment of older people.”

The forecast is more downbeat than estimates published by the Office for Budget Responsibility (OBR) in November.

The OBR, which was set up by the government to provide independent assessments of the UK economy, expects unemployment to peak at 8.7% of the total workforce in the final quarter of 2012. The CIPD believes the unemployment rate will hit 8.8% in 2012.

Official figures showed that the UK unemployment hit its highest level since 1994 in the three months to October, when it rose by 128,000 to 2.64 million.

The Office for National Statistics (ONS) said the jobless rate for the three months to October was 8.3%, up from 7.9% in the same period last year.

Youth unemployment rose to 1.027 million, the highest since records began in 1992.

January 10, 2012 · Home Based Jobs · One Comment
Tags: , , , , , , , ,  · Posted in: Full Time Jobs, Home Based Jobs, Part Time Jobs, Redundancy, Risk of Redundancy, Self Employed Work, Self Employment, Self Employment Jobs, Uncategorized, Unemployment Rises, Work From Home

One Response

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