Britain Expects 3 Million Unemployed by 2010
November 18th, 2008 Posted in In-Depth Analysis
Britain’s economy is set to continue its downward spiral into mid-2010. Economists previously forecast that Britain’s economy will recover by the third quarter of 2010. However, forecasts have been adjusted due to the worse than previously expected financial crisis that Britain is experiencing.
The Confederation of British Industry (CBI) predicts that the unemployment rate may reach a peak of 2.9-3 million by the first quarter of 2010. The CBI is expected to meet with the Chancellor of the Exchequer Alistair Darling to discuss the current economic crisis, which has hit Britain more than its neighbours, such as Germany, France, and Italy.
The leader of the opposition, David Cameron clashed in Parliament with Prime Minister Gordon Brown, in regards to whether to increase the current level of capital spending of 5 billion pounds to boost the economy. Cameron argues that Brown has not done enough to increase the fiscal stimulus of the British economy.
Market analysts forecast that London will be hit more than other cities in Britain due to the way in which the economy of each of these cities has grown in recent years. It is forecasted that between 380,000 and 400,000 London jobs are set to be cut by the end of 2010.
The number of people that are claiming the Job Seekers Allowance (unemployment benefit) in Britain has increased to its highest level since the early 1990s. This has added additional negative pressure to an economy which is already in deep crisis. Economists believe that the economy will start to recover by the end of 2010. However, in the short to medium term the British economy is set to be one of the worst affected in the European Union.
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Tags: British economy, GBP, Unemployment
