The Chartered Institute for Personnel and Development (CIPD) has warned that unemployment in the UK looks poised to soar in 2011, as the impact of government spending and jobs cuts begins to bite.

According to new research from the organisation taking into account the views of 1,000 public sector HR bosses, the rate of adults out of work will exceed that currently anticipated by the Office for Budget Responsibility.

“If all goes well … the jobs market will be able to cope,” said CIPD chief economic adviser Dr John Philpott. “Things only have to turn out a bit worse than expected in the wider economy for the jobs situation to weaken.”

The CIPD claims unemployment could reach 2.7 million next year and Dr Philpott warned 2011 is most likely to feel like “another year in the economic doldrums”, rather than a sustained recovery.

Earlier this week, research from the Prince’s Trust indicated that those who find themselves in long-term unemployment are more susceptible to mental health problems such as insomnia and panic attacks.

Posted by Ross George