LONDON: The Government has been warned to tackle the country’’s unemployment crisis urgently or see the number of jobless rise to more than three million.
A report by leading think tank the Institute for Public Policy Research (IPPR) said quick action is needed to create more jobs.
Figures released today showed a record jump in the unemployment rate - 281,000 people lost their jobs in the three months to May.
Some business analysts are warning the number of people out of work could reach 3.2 million by next year.
The IPPR said new sources of growth are needed because the industrial make-up of the economy is changing.
It also highlighted the fact that Britain had until now been heavily reliant on public sector, retail, housing and finance as sources of employment growth, but these areas could no longer be depended upon in the future.
Co-author of the report and former Bank of England economist Rachel Reeves said: “As a nation we can no longer rely on banking, retail and the public sector to create the jobs we need.
“If we are to get Britain back to work, there will have to be large increases in the jobs available in hi-tech manufacturing and private service sectors such as the creative industries.
“This could happen, but only with the right combination of entrepreneurship and Government action.”
The report suggested new areas for employment growth included knowledge and creative industries, hi-tech manufacturing, pharmaceuticals and care services.
However the IPPR said the sectors would need Government support to boost training and spending.
Employment minister Jim Knight said: “The Government’’s New Industries New Jobs strategy sets out the high value industries we need to expand as the economy recovers.
“We need to match people to these sectors and so we”ve invested £5 billion to keep Britain working, which means more advisers in jobcentres, a guarantee of work or training for young people, and 250,000 new jobs in growing sectors.”
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