Spending cuts could lead to one million job losses
Accountancy giant PwC has issued a review of proposed spending cuts in the UK with a warning that up to 1 million jobs could be lost between the private sector and the public sector. Up until now many had believed that spending cuts would only have a major impact upon the public sector when in reality the loss of jobs could be evenly spread between the two sectors. Should this be enough to change the government's strategy going forward?
While there is no doubt we will experience pain either way in the UK in the short to medium term, and a potential £46 billion reduction in annual gross production by 2014/15, PwC believes this should not derail any potential economic revival in the medium term. The figure of 1 million potential job losses is a worst-case scenario and it is hoped that flexibility in the labour market could reduce this figure substantially.
It is only now that we are starting to see the potential pain that UK consumers and UK businesses can expect to experience in the short to medium term before an expected economic revival. Unfortunately, because of the state of UK plc finances there are very few options available to the government.
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