British austerity could lead to 1.6 million job losses

Job Cuts

Reports have indicated that the Coalitions Government's spending cuts and austerity measures could have damaging effects on UK employment levels.

Research conducted by the Chartered Institute of Personnel and Development (CIPD)predicts that 1.6 million jobs could be lost by 2016 as a direct result of spending cuts and the VAT rise.

This is in stark contrast to the Treasury who predicted the opposite when they said: “The independent Office for Budget Responsibility (OBR) has set out its forecast showing sustained economic growth in the years ahead, with employment rising and unemployment falling.”

However the CIPD sees things differently. They estimate that 725,000 jobs will be lost in the public sector, with a further 900,000 to go in the private sector. John Philpott, chief economic adviser to the CIPD, said the number of public sector job losses cited in the Spending Review looked like "an underestimate, given what most public sector managers are telling us."

The Coalition Government has strongly defended the spending cuts it has introduced, they feel that the right moves have been made to help Britain reduce its massive deficit, and the quicker the deficit is cleared the quicker the economy can recover. Predictably, the cuts have been met with widespread dismay, with both expert commentators and normal UK residents finding fault with the numerous sanctions.