Could public sector job cuts derail the recovery?

As expected, the June 2010 Budget announced a significant fiscal tightening including large real spending cuts. However, one of the concerns often raised about the current tentative UK economic recovery is that it might be derailed by the public sector job cuts that will be an inevitable consequence of this fiscal squeeze.

The excerpt from the UK Economic Outlook report presents historic employment statistics to put the issue in context and discusses possible future trends.

John Hawksworth, head of PwC Macroeconomics, presents an overview of the UK Economic Outlook research.