Unemployment could reach 3.5 million

10:05 17th April 2009

Unemployment in the UK could potentially reach 3.5 million within the next two years if the recession does not abate, according to an expert body.

Economic research consultancy Capital Economics has warned that small businesses could suffer the most if job losses continue to rise.

With the National Institute of Economic and Social Research warning that the country could be suffering from the effects of the recession through to 2012, more people may seek web design courses or IT training to improve their job security.

Jonathan Loynes, chief European economist for Capital Economics, said: "In terms of the impact on small businesses, it's got to be negative and a lot of small businesses will undoubtedly go bankrupt."

In January this year there were nearly 50,000 fewer people in full-time employment than there were in the third quarter of 2008, according to figures from the Office for National Statistics, while 50,000 more people were working in part-time jobs.