Autumn Statement 2012: Pain for workers as wages growth set to slow next year Mark Beatson, chief economist at the Chartered Institute of Personnel and Development said the labour market had "out-performed" expectations in maintaining employment given the depth of the recession. "Indeed, 2012 will end with higher employment and lower unemployment than forecast in March even though the economy has not grown at all over the year," he said. John Philpott, director of consultancy The Jobs Economist, said although the OBR has lowered its forecast for the peak in unemployment, the outlook is still "very bleak" for the UK economy. He points out that the number of people in work is forecast to be unchanged between the fourth quarter of 2012 and quarter four of 2013: the employment rate is expected to fall just 0.3pc to 58.1pc over the period. At the same time, the unemployment rate is expected to rise by 100,000, from the 7.9pc it is currently to 8.3pc for the quarter. Mr Philpott said: "Whatever the medium term employment impact of the policy measures contained in the Autumn Statement, the OBR clearly does not expect these to help the jobless in the short term." He explains the picture for public sector jobs is even bleaker. The OBR is now projecting that the coalition's spending plans will eventually result in the loss of more than 1m public sector jobs, including 700,000 in the current Parliament. Forecasts of job losses on this scale were ridiculed in 2010 but are now being realised. Assuming the OBR is correct in forecasting 2.4m additional private sector jobs in the coming years, the share of public sector employment in total employment is heading toward a record post-war low.