Workers are worried about money and their jobs and are living under "tremendous pressure", according to a new study today.
Unite said a survey of 50,000 of its members showed that Britain is becoming "divided and impoverished" and increasingly forced into "insecure" working.
As well as job losses, workers are also being hit by pay cuts and seeing an increasing number of agency staff being employed, said the union.
Unite published the findings to launch a campaign called Don't Break Britain, which will include support for any community action against spending cuts.
Unite's new leader Len McCluskey said: "Never mind Nick Clegg's alarm clock Britain - this is alarm bell Britain. This is clear, unequivocal proof that working people striving to raise their families and do a decent job are being kicked in the teeth by this government.
"It is heart-breaking to hear of workers, who are not well paid, told their salaries will be slashed. It is take a cut or take a hike. What on earth has this got to do with growing our economy?
"Or to learn of the elderly and vulnerable who will lose the services that make every difference to the quality of their lives. Who gave Mssrs Cameron and Clegg the right to pull the rug out from under these people?
"This wanton social vandalism will not create one penny in national wealth, in fact it will cost us in unemployment benefits and social despair.
"With bankers lining up to line their pockets while workers worry about every penny, we are not all in this together.
"This government is breaking Britain. There are more economically effective, more humane ways to address the deficit. That is why Unite will stand shoulder to shoulder with people on streets and communities up and down the country as they defend their way of lives and the services they hold dear."
Council workers who took part in the survey said jobs and services were being cut, libraries closed and pay cut by up to a third.Reuse content