Jobless toll 'will soar to 3.4 million'
THE number of jobless will soar to 3.4 million as the credit crunch deepens, experts warned yesterday.
Official figures out this week will show the scale of the growing financial crisis, with more than two million now out of work following redundancies across the country.
Last week more than 50 people queued at a Job Centre in Southampton, looking for work – before the doors opened at 10am.
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But an independent forecasting group predicts things are about to get much worse. Unemployment will hit 3.25 million by the end of 2010, rising to 3.4 million by 2011, warned the Ernst & Young ITEM Club.
Without additional Government intervention a deep recession could evolve into a depression
And it believes the fear of being out of work will mean families will spend less for the first time in a generation. It said over the next 12 months the UK economy will suffer the most since 1946.
And it predicts the gross domestic product will shrink by 2.7 per cent in 2009 and another 0.5 per cent in 2010.
Peter Spencer, the group’s chief economic adviser, warned: “Without additional Government intervention a deep recession could evolve into a depression. But more needs to be done urgently otherwise the flow of credit will remain frozen and the economy will remain in recession.”
The group said a more aggressive monetary policy is needed to help the UK economy.
Meanwhile, it emerged yesterday that 50 people are chasing every job in some areas, according to analysis of Jobseeker Allowance claimants.
