Jobless expected to hit 2.7 million

Unemployment will peak at 2.7 million next year, lower than previously predicted, although the jobs outlook could get worse if economic growth is weaker than expected, according to predictions by the Chartered Institute of Personnel and Development.

The CIPD expects the jobless total to be around 2.4 million in 2015, roughly the same as at present and still 800,000 above the pre-recession level.

The report, published today ahead of new unemployment figures, said the lower forecast was partly due to lower than expected unemployment in the first three months of this year.

The CIPD also revised down its forecast for economic growth this year, to 1.4 per cent, against its previous forecast of 1.6 per cent.