UK: Warning on future jobs deficit

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Economic growth needs to average at least 2.5% a year between now and 2015 to maintain employment. The Chartered Institute of Personnel and Development (CIPD) says this figure is required for private sector job creation to be able to compensate for the large numbers of public sector jobs which are expected to be lost as a result of cuts in government spending.

The Office of Budget Responsibility (OBR) predicts growth of 1.3% this year, 2.6% in 2011 and 2.8% in 2012 and 2013, with 1.3million more jobs created in the five years to 2015 and an unemployment rate of 6.1%.
On the other hand, the CIPD suggests a lower rate of economic growth is ‘easily as imaginable as the OBR forecast’ and predicts an increase of only 100 000 posts leading to a rate of 8% in 2015.