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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2010/12/unemployment-to-hit-27m-in-2011.jpg"><img class="alignnone size-full" title="Unemployment will increase to 2.7 million next year, a business group predicted" src="http://londonglossy.com/wp-content/uploads/2010/12/min-unemployment-to-hit-27m-in-2011.jpg" alt="Unemployment will increase to 2.7 million next year, a business group predicted"/></a></p>
<p>Unemployment will increase to 2.7 million and average earnings will rise by a below-inflation 2% next year, a leading business group has predicted.</p>
<p>The Chartered Institute of Personnel and Development (CIPD) said the jobless rate will reach 9% in 2011, with public sector employment set to fall by 120,000 and private sector jobs cut by 80,000.</p>
<p>The group forecast that the number of people in work will fall by 200,000 next year.</p>
<p>John Philpott, chief economic adviser to the CIPD, said 2011 will be a &#8220;fingers crossed&#8221; year for the economy and jobs.</p>
<p>&#8220;If all goes well and the unexpectedly strong progress made in 2010 is sustained, the jobs market will be able to cope with the impact of the coalition government&#8217;s spending cuts and tax increases without any significant rise in unemployment.</p>
<p>&#8220;However, things only have to turn out a bit worse than expected in the wider economy for the jobs situation to weaken, which remains the CIPD&#8217;s central forecast. Either way, this doesn&#8217;t mean that we are facing a return to the dire recession days of late 2008 and 2009, but nonetheless 2011 will probably feel like another year in the economic doldrums, rather than the start of a return to prosperity.</p>
<p>&#8220;Even if 2011 turns out to be a jobs-light, rather than jobs-loss or jobs-standstill year, the chances are that the bulk of any new private sector jobs will continue to reflect the experience of 2010, with part-time and temporary jobs in the majority.</p>
<p>&#8220;Moreover, most workers will feel a squeeze in their real living standards, with pay rises still relatively modest against a backdrop of higher prices for many essential products and services and higher taxes.&#8221;</p>
<p>The report warned that the Government&#8217;s austerity measures could spark employment disputes and social discontent, adding that 2011 could prove to be a &#8220;troubled year all round&#8221;.</p>
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