Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

British faces a million job losses from spending cuts

LONDON, Oct 13 – A million people, half of them in the private sector, could lose their jobs in Britain as a result of biting government spending cuts, a report published Wednesday said.

Professional services firm PricewaterhouseCoopers (PwC) said private sector firms — particularly in areas like construction and defence — would be hit hard by falling demand for their services from the public sector.

It said gross output from the private sector could fall by some 46 billion pounds (52 billion euros, 73 billion dollars) per year by 2014/15.

At the same time, the study concluded that the cuts were unlikely to tip Britain into a double-dip recession, as some commentators have predicted.

The PwC report comes a week before Prime Minister David Cameron\’s coalition government unveils its long-threatened plans for spending cuts of 25 percent in most departments as it battles to reduce a record public deficit.

It also coincided with latest official figures showing that Britain\’s unemployment rate fell very slightly to 7.7 percent in the three months to the end of August. There are currently 2.45 million unemployed.

PwC chief economist John Hawksworth said that even though the job losses would be serious, they would probably not be bad enough to hit Britain\’s recovery from recession, which began at the end of last year.

Overall, 3.4 percent of jobs could be lost in the public and private sectors as a result of the cuts, the PwC report said — equivalent of roughly 943,000 positions.

"Predicted levels of public and private sector job losses will be a drag on the pace of the economic recovery but should not derail it altogether," said Hawksworth.

Advertisement. Scroll to continue reading.

"While private sector employment may be affected as much as the public sector, this could be mitigated by increased labour market flexibility on wages and hours worked, as we saw in the 2008-09 recession."

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...