2.8 million Unemployed in Britain

The Chartered Institute of Personnel & Development for Britain announced yesterday that it expects the unemployment level to continue to rise next year, with a paek of 2.8 million forecasted.

While the estimates are a considerable improvement from previous forecasts which had predicted a high of 3.2 million unemployed when the economic downturn was at its nadir, the latest figures from the CIPD have severely damaged hopes that the UK will be set back on track by any economic recovery.

According to the CIPD up to 250,000 Britons will be made jobless prior to the end of 2010’s second quarter. The current level of unemployment in the UK is 7.9 percent or 2.49 million people. The CIPD’s economic adviser Dr John Philpott has further suggested that the unemployment rate could grow even higher if the economic recovery did not take hold as expected.

Philpott argued that if recovery was slower than expected or if earnings growth was affected then the unemployment number could easily reach three million. The CIPD also suggested that any pay increases in 2010 would likely be outweighed by inflation forecasts – with a projected rate of increase for salaries at 2 percent, lagging behind the 3 percent forecast for 2010 inflation.

Unemployment and immigration are looming as key issues in next year’s general election, with recent high-profile media debates over population numbers and British job losses causing widespread public concern.