One in ten will be jobless by end of 2010, business chiefs warn

Published on Sunday 8 March 2009 20:47

UNEMPLOYMENT will reach 3.2 million, or just over 10 per cent of the workforce, in the second half of 2010 as a result of the recession, a leading business group will predict today.

The British Chambers of Commerce said economic prospects had worsened "significantly" since its last forecast in January as it made more gloomy estimates of how industry will be hit by the economic slump.

Manufacturing output will fall "sharply" this year, while capital investment by firms will "plunge", according to its report.

Unemployment, which is set to go over two million later this month, will peak at 3.2 million, the BCC warned, adding that next month's Budget was the government's "last real chance" to make up for the "failure" of the VAT cut last November.

Director general, David Frost, said: "It will be business that leads the UK out of recession. For this reason it is vital that companies are given the freedom to create jobs and wealth.

"The Chancellor now has a perfect opportunity to demonstrate the government's firm commitment to supporting wealth-creating businesses during this recession."

&#149 One in ten practising solicitors in Scotland has been sacked during the credit crunch. Lorna Jack, chief executive of the Law Society in Scotland, said her members are facing the bleakest situation in memory.