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Job market needs urgent attention, says report

A report released today by the CBI indicates that problems in the labour market cannot be solved merely by economic growth.

Analysis has revealed that economic growth in the decade before the recession concealed deal-seated problems, including pockets of long-term unemployment and inactivity, high public sector dependency and serious skills shortages.

The results also show that the North East is one of the regions worst affected by the skills deficit, with the divisions set to deepen further as the most highly skilled individuals flock to London.

While unemployment levels are expected to rise to around 2.6 million before decreasing in 2012, the report has stressed the need to break this cyclical rise and fall in unemployment.

John Cridland, CBI Director General believes that the solution to these problems is to address the longer-term issues related to unemployment. Relating to skills, welfare dependency and economic performance.

He said: “These problems will not disappear with the economic recovery and left unchecked will have grave social and economic consequences”

He has also called for the government to encourage private sector growth as a solution to the problem.

“We need to get the UK working and that is going to require fresh thinking and innovative solutions,” he said.

This was posted in Bdaily's Members' News section by Ruth Mitchell .