Public sector job cuts could cause a "double-quick, double dip recession" in 2010, says TUC (XpertHR

Public sector job cuts could cause a "double-quick, double dip recession" in 2010, says TUC

With swingeing public spending cuts - likely to result in severe pay restraint and job cuts in the public sector - seemingly on the cards whether Labour or the Conservatives win the 2010 general election, the TUC has issued a grim warning that such action could plunge the UK back into recession (external website).

According to the TUC:

If the Government and Bank of England's stimulus programme was to be replaced by public expenditure cuts to reduce the deficit, the result would be a 'double-quick double dip' recession.

Speaking ahead of the TUC conference, which starts today (Monday 14 September 2009) in Liverpool, TUC general secretary Brendan Barber said:

A double-dip recession would not just be deeper - but also longer. Prolonged mass unemployment would not just do economic damage, but would have terrible social effects. I don't think that Britain is broken, but this would be one way to break it.

As we recently reported, an increasing number of economic commentators now fear that a "double-dip recession" - in which the current tentative signs of recovery grind to a halt and the economy relapses back into recession - is a distinct possibility.

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Posted by Michael Carty
on September 14, 2009 7:30 AM

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