Unemployment is expected to rise again as public sector cuts hit home At least one in 10 people will be unemployed in half of UK regions by 2015, an economic think tank has forecast.
According to the Centre for Economics and Business Research (CEBR), the unemployment rate will exceed 10% in Wales and the North of England.
The CEBR blamed expected huge cuts to public sector jobs.
London and the South of England are expected to escape the worst of the job losses, however.
The report warns unemployment could reach as high as 11% in Wales and the North East of England – both regions where many people are dependent on the public sector for work.
“In Wales there has been a massive growth in public spending in the last few years, and that’s probably unsustainable”
Douglas McWilliams CEBR chief executive
However the researchers predict south east and south west England will see jobless rates peak at 7% and 8% respectively.
London, the South East and the South West are expected to grow their share of the UK’s economic activity, the CEBR says, helping them to avoid the worst of the job losses.
London is expected to account for 20% of the economy by 2015, thanks to the expected continued growth in financial services.
In contrast, the rest of the UK is expected to see its share of economic activity fall, with the North West seeing the biggest fall.
Speaking to the BBC, the CEBR’s chief executive Douglas McWilliams said that Wales in particular could suffer because of the number of public sector jobs there.
“Those regions which are currently very dependent on the public sector are likely to suffer a lot more as the public sector gets cut,” he said.