CBI predicts unemployment will reach 2.6 million this year
New report highlights “deep-seated structural problems” blighting job market
Unemployment across Britain will reach 2.6 million this year, as “deep-seated structural problems” within the UK labour market reach a nadir.
These are the principals of a new study from the Confederation of British Industry (CBI), entitled Mapping the route to growth: rebalancing unemployment.
The study finds that a number of systemic problems, such as long-term employment and high public sector dependency, have eaten away at the labour market for years – even during the supposed ‘boom’ period before the recession.
These problems have also been exacerbated by the economic downturn, leading to spiralling unemployment – which will reach its peak this year.
The CBI believes that any recovery will require the involvement of both the government and the private sector.
According to John Cridland, CBI director-general, while the government was right to focus on tackling the structural deficit in public finances it also needs to “apply the same rigour to attacking the structural jobs deficit”.
He added: “Only private sector growth can create the jobs we need and we must ensure the fruits of recovery are felt in every region. We need to get the UK working and that is going to require fresh thinking and innovative solutions.”