Sectoral and regional impact of the fiscal squeeze

Nearly one million public and private sector workers are expected to lose their jobs by 2014/15 because of public sector spending cuts. And, some regions and industries will be hit harder than others.

Business services and construction industries are likely to be the hardest hit sectors. Northern Ireland, the North East and Wales are likely to have the greatest job losses as a percentage of total employment.

The outlook for the UK economy remains uncertain, but with interest rates staying lower for longer, the potential for job creation in the private sector may increase.

In the short term, Government will need to address two important areas: managing the transition through innovative approaches to workforce reform and encouraging private sector investment to fill the infrastructure funding gap.

In the long term Government will need to provide a stronger foundation for growth which is financially, socially and environmentally sustainable in the long run.