UK economy to shed 3.3 million jobs in 2010 despite recovery: Reports

Though the job market slump in Britain is slowing , a deterioration in confidence within the public sector could mean the number of unemployed would be about 3 million next year a report says.

According to the Chartered Insitutute of Purchasing and Supply (CIPD) more than 10 per cent companies expect to cut their workforce than take on extra staff. However, the figure is an improvement over the previous survey which put the figure at 19 per cent.

With government jobs report due to be announced on Wednesday the CIPD predicts the UK jobless total to reach 3.3 million in 2010.

Conditions in the private sector are improving and the balance between companies shedding jobs versus those adding them falling sharply from 30 per cent to 2 per cent.

However, things are getting worse in the public sector where the balance last time vaulted to 30 per cent from 3 per cent.

In June the CIPD had warned that the public sector could shed around 350,000 jobs in the next few years.