A report has warned that the unemployment in the nation is about to reach 3 million from it current level of 2.5 million in UK. The Chartered Institute of Personnel and Development (CIPD) which is an employment group have informed that the deficit reduction would help in the recovery of the job market.

CIPD has said that there is not any big possible real wage growth till at least the year 2015 and the public sector workers have to face pay cuts”. On the 22nd June budget, the chancellor is expected to sweep cuts to try to cure the 156 billion Euros deflect.

On the other hand, the business group the CBI has proposed for 4 Euros spending cuts for every single Euro in tax hikes. The firm has warned that without damaging the growth prospects the public finance should be repaired and called for saving money through sharing back office functions and job cuts in the public services.

Earlier, the CIPD had estimated that the total number of unemployment would reach to 2.65 million to the end of this year. But Mr. John Philpott, the chief of economic advisers had revised the CIPD number to 2.95 million.