The analysis by the Office for Budget Responsibility (OBC), the independent group set up by the Treasury has announced that by the year 2016 the public sector jobs will be cut by 610,000. Compared with the 5.53 million working today there will only be a possible 4.92 still employed in the public sector in 6 years.
The OBR rushed out the news of their data calculations after their leaked figures appeared to show there would be a rise in unemployment by 1.3 million because of the grave budget cut measures of the Treasury. The 1.3 million job loss figures were reported in The Guardian, which claimed to have seen the Treasury’s internal document.
The size of the Budget deficit resulted in the ministers insisting that government expenditures would have to be severely cut.
Shadow Welsh Secretary Peter Hain has reported the total number of job losses in Wales could total 50,000.
“You cannot continue funding jobs in the public sector on the back of a budget deficit because they are not sustainable jobs”, the Prime Minister’s official spokesman said.
“In order to see employment and growth in the longer term, you need to tackle the deficit. We want to see a re-balancing from the public to the private sector, both in terms of their share of national output and their share of employment.”