More job losses feared

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THE North East lost 16,000 public sector jobs in the 12 months to June, according to a new report.

That 5.5 per cent fall in such employment in the region means almost 300,000 jobs have gone across the UK since December 2009, said business advisers PwC.

Between December 2009 and June this year, public sector employment fell by 290,000.

While this was offset by 600,000 new private sector jobs, PwC said the English regions have suffered most, with the North East and West Midlands hardest hit.

The firm also warned of a significant chance of a double dip recession.

Today’s report, Spending Review: One year on, concludes that the scale of public sector job cuts are much deeper and have occurred much faster than projected by the Office of Budget Responsibility (OBR).

Neil Austin, director at PwC in the North East, said: “The public sector job losses have come much faster than anticipated.

“After only one quarter of data for this financial year, the job losses in the public sector have already exceeded the OBR forecast for the whole of the 2011-12 financial year.

“The challenge now for Government is not only how to do things differently, but how to do different things and mitigate the impact of further cuts in spending on services.”