PricewaterhouseCoopers report says the comprehensive spending revue could lead to loss of 500,000 private sector jobs
Some 100,000 construction jobs could be lost as a result of public spending cuts, according to a report released today by accountant PwC.
A week ahead of the chancellor鈥檚 comprehensive spending review, the study estimates that half a million people in the private sector will lose their jobs as a result of the cuts.
The report also found that private sector output could be slashed by 拢46bn by 2014/15, or 2% of the total, which would not be enough to push the economy back into recession, PWC said.
John Hawksworth, PwC鈥檚 chief economist, said the private sector鈥檚 dependence on government contracts had increased during the downturn as other orders dried up, but now a 鈥渃old turkey period鈥� was needed.
Dave Prentis, general secretary of Unison, said: 鈥淭his report bears out all we have been warning over the past few months. Public spending cuts will damage the economy and will drag the country into a downward spiral.鈥�
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