U.K. Unemployment Will Rise Until 2016 on Fiscal Cuts, CEBR Says

U.K. unemployment will rise over the next five years almost everywhere in the country as the deepest government spending squeeze since World War II bites, the Centre for Economic and Business Research said.

Joblessness in the North East will increase to 13 percent in 2016 from 12 percent in 2012, while the rate in Northern Ireland will climb to 10.7 percent from 8.8 percent, the group said in a statement in London today. The regions have a large proportion of public-sector workers, which is weighing on the employment outlook there, the CEBR said.

Unemployment in London, now at 10.3 percent, will rise to 10.7 percent next year and stay there until 2016.

“Five more years of pain are expected for much of the U.K.,” Rob Harbron, economist at the CEBR, said in the statement. “The outlook is tough for U.K. households, particularly those in places with a high dependency on public-sector employment.”

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