Spending cuts ‘risk 1m UK jobs’, says PwC

Job centre in Chatham

Business Digest: Construction and business services to be amongst hardest hit

LAST UPDATED AT 13:45 ON Wed 13 Oct 2010

Almost one million jobs in the UK could be lost because of government cuts in public spending, a report has claimed.

According to accountancy firm PricewaterhouseCoopers, about 500,000 of those job losses may be in the private sector due to the impact of firms supplying the public sector.

PwC put the total number of job losses arising from public sector spending cuts at about 943,000.

According to the report, the south-east of England, the north-west and Scotland would be the worst hit areas, with business services and construction amongst the industries that will suffer the most.

PwC chief economist John Hawksworth said the predicted levels of job losses would no doubt be a drag on the pace of economic recovery, "but should not derail it altogether".

Read a full report at BBC News. · 

For further concise, balanced comment and analysis on the week's news, try The Week magazine. Subscribe today and get 6 issues completely free.