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Friday, 5 November 2010

UK Govt Spending Cuts British People to Face Greatest Unemployment Crisis Since Great Depression

Spending Cuts: British People to Face Greatest Jobs Crisis Since Great Depression

The spending cuts announced by the ConDem regime are set to plunge Britain into its greatest jobs crisis in modern history and will see more unemployed than even during the Great Depression, according to estimates produced by the Chartered Institute of Personnel and Development (CIPD).
The CIPD said the cuts, estimated by Tory Chancellor George Osborne to cause 500,000 public service job losses, will have a far greater residual impact throughout the economy.
According to CIPD chief economic adviser, Dr John Philpott, the “full impact of the Coalition Government’s planned fiscal tightening has been understated.”
He estimated that the private sector will be hit harder by the cuts in the public sector and that in excess of 1.6 million jobs will be lost in both sectors.
Furthermore, Dr Philpott said, the CIPD estimates that the real number of jobs to be lost in the public sector will be around 725,000.
As earlier predicted by the British National Party, the job losses will not be confined to the public sector. Many companies depend on state contracts for their staple diet and cutbacks in the public sector invariably impact the private sector as well.
The CIPD has predicted that the total number of jobs which will be lost in the private sector due “directly and indirectly from the cuts” will be of the order of 650,000.
To make matters worse, the CIPD has said that it believes that an additional quarter of a million jobs will be lost as result of the VAT increase, which is due to take effect in January 2011.
According to the Office for National Statistics (ONS), the number of unemployed males reached 1.44 million in August 2010, and the number of unemployed females reached 1.01 million in the same period, making a grand total of 2.45 million.
In addition, the number of people claiming Jobseeker’s Allowance (JSA) increased by 5,300 between August and September 2010 to reach 1.47 million.
This is the second consecutive monthly increase in the number of claimants, the ONS said.  The increase in the total claimant count was mainly due to a rise of 4,200 in the number of female claimants to reach 431,000. The number of male claimants increased by 1,100 to reach 1.04 million. 
However, long-term unemployment is far worse than the official figures show. The official labour market statistics show that in September, “only” 4,560 people have been continuously out of work for five years, but a recent analysis of JSA figures show that the Department of Work and Pensions’ benefit database shows 183,000 have claimed JSA for three out of the past five years. Seventy-six thousand have claimed for five of the last seven, and 29,000 for eight out of the last nine years.
The figures differ because the DWP’s database measures people who get a job or training for a short time but then go back on the dole. These people are not classified as long-term unemployed when in fact they have not been in continuous employment for years.
If unemployment remains that high, and 1.6 million additional people are added to the figures, it is possible that Britain will look at a whopping 4 million unemployed within the next few years.
This will be almost double the number of unemployed at the height of the Great Depression in Britain. Official statistics show that by the end of 1930, unemployment had more than doubled from 1 million to 2.5 million.
Ironically, the public service job losses are unnecessary if the ConDem regime had merely cut non-essential expenditure, as outlined earlier by the BNP.
Given that none of the Westminster parties have ever shown any interest in putting British people first, it is however unlikely that they would consider any cuts which did not directly harm our nation.