The Chartered Institute of Personnel and Development (CIPD) has said the impact of the Spending Review had been understated: the cuts and the rise in VAT to 20% in January will result in more than 1.6 million job losses across the public and private sectors by 2016.
It predicts 725,000 public sector jobs will go - more than 100,000 higher than a government detailed plus some 900,000 private sector jobs will disappear.
The Treasury defended its spending cuts, saying: "The independent Office for Budget Responsibility (OBR) has set out its forecast showing sustained economic growth in the years ahead, with employment rising and unemployment falling."
In its report, the CIPD said the private sector could create more than 300,000 jobs a year, but only if the economy grew faster than 2.5% on average a year.
Initial estimates show that the UK economy grew by 0.8% between July and September, and by 1.2% in the previous three months.
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