Unemployment will keep climbing for at least another five years in most of the UK according to forecasts by the Centre for Economics and Business Research (CEBR). The prediction by the think-tank reflects what the CEBR calls a “generally weaker economic outlook for a longer period in the UK”.
The CEBR revised its previous unemployment predictions that it presented in October. It said that London, the East and South East of England could be the only areas to break the trend.
Rob Harbron, CEBR economist said that the new report predicted ‘five more years of pain’ for most of the country.” He also said that “Family budgets are being squeezed between the pressures of rising unemployment, low earnings growth and stubbornly high inflation.”
The CEBR think-tank says that the rate of unemployment in the worse affected parts of the UK would rise above the national average. As many as 13% of people in the North East of England could be unemployed it is predicted.
London is expected to lead the way regarding job creations but could still suffer with 10.7% of its people being out of work by 2016.
Last month’s figures from the Office of National Statistics (ONS) show that the current rate of unemployment is 8.3% with a figure of 2.65million people out of work.