BCC predicts unemployment will reach 3.2 million
David Woods, April 06, 2009
Unemployment will peak at 3.2 million in the third quarter of 2010, according to the British Chambers of Commerce (BCC).
The BCC's Economic Survey results released today shows ‘worrying' deterioration in the manufacturing sector with a 10-year low in manufacturing exports. But the survey of 6,500 firms shows decline in the service sector is slowing.
David Kern, chief economist at the BCC, said: " The measure [the Government has] taken in recent months has failed to alleviate the downturn, The survey shows improvement in services but these are fragile gains and will fizzle out without supportive policies.
"The results point to further increases in unemployment, and to limit the upsurge in the jobless total it is vital to slash the regulatory burden on business."
David Frost, director general of the BCC, claims the Government must use the forthcoming Budget to ease the recession. He added: "The Budget is an opportunity for the Government to show business it is doing everything possible to support them.
"It will be business that drives the UK out of recession and for this reason it is vital they have the freedom to create jobs and wealth."