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Private sector jobs attached to civic spending are likely to be affected by the anticipated cuts to the number of people working in the public sector, according to one expert.
Stephen Overell, associate director of the Work Foundation, said there is no doubt the budget deficit will have serious consequences for employment in the UK.
He added the number of private sector jobs that could be impacted by the cuts may be as high as half a million.
Mr Overell stated it may take the best part of a decade for the employment market to recover to its pre-downturn peak.
"In this [recession] we have also got the public spending cuts as well so it could be even longer than that," he claimed.
Figures released by the Office for National Statistics revealed - for the three months to August 2010 - the number of people in employment aged between 16 and 64 was 70.7 per cent, a rise of 0.2 per cent on the previous quarter.
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