The economist from the Chartered Institute of Personal Development (CIPD) has said that the chancellor’s pre-budget recommendations will slow down the growth of the job market.

Alistair Darling, chancellor, announced the pre-budget report on November 24th this year, which said that there would be measures put in place to boost the UK economy, for example, the £20 billion he has promised to invest next year. However, John Philpott, chief economist at the CIPD, said that although the measures will be welcomed by the both employers and employees there is uncertainty about whether the cash investment and other planned implementations will have the desired effect on stimulating the economy.

Philpott said: “In a welcome attempt to kick start the economy the chancellor has hoofed a massive economic stimulus package up the pitch, and is hoping consumers and employers will pick it up and run with it.

“But there is a danger that this hit-and-hope approach won’t be enough to counter the job cuts that are already planned. Even if the chancellor’ slightly optimistic growth forecasts are correct, his own expectations of a slowdown means job losses are certain to mount next year.”

He added: “There is certainly a good spread of jam in this budget. But with the bill so clearly in the post, including a hike in national insurance contributions for employers and employees just as the economy is expected to be recovering, there is a real danger that this budget may do as much for to slow medium-term jobs growth as it does to slow short-term job cuts.

“In the face of the avalanche of job cuts we’re predicting over the winter, the package of support for people facing redundancy is welcome. These initiatives demonstrate the Government recognises the severity of the looming job crisis. “The extension of pre-redundancy support from the large employees of large firms to those working in small to medium sized enterprises and the provision of more pre-redundancy training to help prepare people for the jobs market is particularly welcome.

However, according to Philpott: “It is a shame that the National Employment Partnership appears to be focusing on only larger employers. With such a high proportion of people employed by smaller employers, it is essential for government to find ways of engaging these employers in efforts to find jobs for the unemployed.”

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