Britain's unemployment levels 'predicted to rise'

An increase in the UK's unemployment levels has been predicted.

Research conducted by consultancy firm Capital Economics warns of the possibility for national unemployment levels to increase to eight per cent over a period of 24 months, reports Personnel Today.

Presently, unemployment is at a rate of 5.3 per cent.

"This is undeniably the most difficult environment the UK economy has faced in 15 years," said John Ward, an economist at the Centre for Economics and Business Research, in a report by the Daily Mail.

"For a lot of people this will be the first time they have ever experienced this sort of downturn."

Specifically, because of the current crunch on credit, the study warns that a total of 440,000 positions could be lost as employers move to reduce costs.

Businesses are also in a position where they need to respond to the possibility of a recession and slumps in demand.