UK unemployment to hike in next 5 years

Unemployment will continue to increase in the UK over the next five years.

This is according to research by the Centre for Economics and Business Research (Cebr), which found there will be a lack of jobs in every region bar the south-east, east of England and London.

The perception of a weaker longer-term outlook than initially expected will result in the unemployment rate rising to 10.7 per cent by 2016, the study remarked.

Rob Harbron, one of the report's authors and an economist at Cebr, stated: "The outlook is tough for UK households, particularly those in places with a high dependency on public sector employment."

He added the triple whammy of rising unemployment, high inflation and low earnings growth has led to family budgets being squeezed even further.

Northern Ireland, Wales, the north-east of England and Scotland are expected to be the worst performing areas in the coming five-year period due to their reliance on the public sector.