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18-Aug-08 11:30 [Research]
Unemployment 'could rise by 300,000' A report by the British Chambers of Commerce (BCC) has predicted a rise in unemployment of up to 300,000 over the next few months due to recession.
The BCC noted that a technical recession - with two or more quarters of declining output - was highly likely, but a major incident similar to that of the early 1990s was unlikely to happen.
As a result, the organisation predicted that the amount of unemployed people could top the two million mark if market conditions deteriorate badly.
Economic adviser to the BCC, David Kern, noted that falls in consumer spending and soaring bills have contributed heavily to the risk of recession, with job cuts being a result of the situation.
He said: "Our view is that the threats to growth are more serious and more immediate than the risks of higher inflation.
"The UK economy urgently needs an interest rate cut to counter threats of recession."
Last week, the Guardian noted that the Organisation for Economic Cooperation and Development had only predicted a rise in job losses of just over 100,000, with the unemployment rate at 5.8 per cent by the end of 2009.
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