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29/11/2010
UK To Lose Less Public Sector Jobs
The independent Office for Budget Responsibility (OBR) has announced that fewer public sector jobs will be lost than first expected.
Over the next four years, the OBR now expects around 330,000 public sector workers to lose their jobs, a huge jump from the June report which originally forecast 490,000 job losses.
However, the estimate for economic growth this year has been raised, from 1.2% to 1.8%, while growth estimates have lowered for the next two years.
The body also added that economic performance next year will experience growth of 2.1% - down from its previous 2.3% forecast; and 2.6% in 2012, down from the 2.8% previously recorded.
Further predictions forecast that, after a peak of just over 8% unemployment in 2011, the rate would fall steadily to just over 6% by 2015. With this in mind, the OBR expects the creation of one million private sector jobs.
These developments precede the government's annual Autumn budget statement, which will be delivered this afternoon by George Osborne.
The OBR said the plan to cut the deficit would lead to "sluggish growth" in the medium term, and would include an increase in VAT from the current 17.5% to 20% and the £81bn of planned spending cuts.
A statement from the body said: "The economy will continue to recover from recession, but at a slower pace than in the recoveries of the 1970s, 1980s and 1990s."
Mr Osborne has already announced the next Budget will be on 23 March 2011.
(BMcN)
Over the next four years, the OBR now expects around 330,000 public sector workers to lose their jobs, a huge jump from the June report which originally forecast 490,000 job losses.
However, the estimate for economic growth this year has been raised, from 1.2% to 1.8%, while growth estimates have lowered for the next two years.
The body also added that economic performance next year will experience growth of 2.1% - down from its previous 2.3% forecast; and 2.6% in 2012, down from the 2.8% previously recorded.
Further predictions forecast that, after a peak of just over 8% unemployment in 2011, the rate would fall steadily to just over 6% by 2015. With this in mind, the OBR expects the creation of one million private sector jobs.
These developments precede the government's annual Autumn budget statement, which will be delivered this afternoon by George Osborne.
The OBR said the plan to cut the deficit would lead to "sluggish growth" in the medium term, and would include an increase in VAT from the current 17.5% to 20% and the £81bn of planned spending cuts.
A statement from the body said: "The economy will continue to recover from recession, but at a slower pace than in the recoveries of the 1970s, 1980s and 1990s."
Mr Osborne has already announced the next Budget will be on 23 March 2011.
(BMcN)
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Northern Ireland WeatherToday:A mostly cloudy start with scattered showers, the showers becoming more isolated and largely confined to the south this morning. Becoming brighter this afternoon, the best of any sunnier spells across northern counties. Northerly winds easing. Maximum temperature 12 °C.Tonight:A dry evening with late sunny spells and some long clear spells overnight. Becoming cloudier across the north towards dawn with a few showers possible. Touch of frost in south. Minimum temperature 0 °C.
