Government cuts in spending will cost million jobs

Government cuts in spending are going to lead to nearly a million job losses, reports are claiming.  About half of the job losses would come from the private sector because of jobs supported by government contracts.  The rest would come from within the government itself.

The hardest hit are predicted to be business services and construction sector jobs.  The report placed the total job loss, including those jobs cut from the private sector because of public sector cuts, at just a shade over 940,000 jobs.

The same report stated that this outcome would create a drag on economic recovery but not destroy it altogether.  The report, compiled by the accounting firm of PwC said that increases in labour flexibility; people working for fewer hours and less wages, would help reduce the job losses.  That, however, would affect the economic recovery.

The areas expected to be hardest hit would be the Southeast of England, Scotland, and the Northwest.  PwC stated that percentage speaking; Ireland would be hardest hit with five per cent of all jobs lost.

Treasury replied to the report by saying that a decisive plan needs to be found in order to lessen the UK deficit and return faith in the economy.  Although there was no speculation on what that plan might be or who was working on it, if anyone at all.

The Treasury further stated that not working on such a plan would jeopardize the economic recovery.  Experts from the Bank of England, International Monetary Fund, and The World Bank agree.