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Public sector cuts may add to existing unemployment issues, which may interest those intending to set up a recruitment agency.

According to Martin Bamford, chartered Financial Planner at Informed Choice, while the cuts may be a necessary move, they could contribute to the unemployment problem in the short term - and the Institute of Public Policy Research (IPPR) suggests this could cause problems for the government's Work Programme.

"It's difficult to envisage a situation where the public sector gets by without quite a few job losses," he comments.

Under the scheme, the government will offer job search assistance to anyone who has been unemployed for over 12 months.

The IPPR shows that long-term unemployment has doubled in the past two years, while the number of job vacancies has fallen.

It notes that, for the government's scheme to work well, there must be enough vacancies to fill.

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