Job losses could mean increased debt

In his recent budget the new chancellor. George Osborne, outlined the spending cuts that the government is putting into place in order to reduce the public deficit. However, since the plans were outlined there have been concerns over how these cutbacks will impact on employment both in the public and the private sector.

Even as part of the election manifesto the Conservative party had stated that it would be cutting spending in order to address the huge public deficit that it blamed the Labour government for. Now that the Conservative party is in power as part of the coalition government with the Liberal Democrats the spending cuts are ready to be put into place.

According to recent reports the cutbacks that the government makes in public spending could result in up to six hundred thousand job losses in the public sector over the next five years. This could have a knock on effect on the private sector, and this could suffer job losses of up to seven hundred thousand job losses over the same period. This means that over the next half a decade up to 1.3 million jobs could be lost because of the cutbacks.

For the many people who are living on the financial edge this could cause real concern, as any loss in hours or complete job losses could mean that they are plunged into unmanageable levels of debt. Many may find that they are unable to make repayments on their mortgages, and this could lead to an increase in repossession.

The former chancellor, Alistair Darling, said that the measures taken by the government did not have to be taken, but had been chosen. He said that hundreds of thousands of people would suffer by losing their jobs as a result of this choice.