Over the next two years, and beyond, the effect of public sector cuts will be felt, it has been suggested.
Recent research from the Centre for Economics and Business Research revealed that between 2010 and 2015, unemployment is expected to reach ten per cent in Wales, the West Midlands and regions around the north of England.
There is already wide variation in the employment levels across the UK, according to Stephen Overell, associate director of The Work Foundation.
He said: "It is quite true that we don't really know exactly where the cuts will fall yet, but there are lots of employers that have been cutting staff, even before they know exactly where the cuts will fall.
"They are beginning to be felt but they'll start to be felt properly in the late autumn time after, the comprehensive spending review in November."
Mr Overell added that the cuts could well affect the local labour force in public services in the north and that the private sector will not be able to absorb the number of redundancies.
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Well isn't that kinda obvious? If a region is so dependant upon one employer, then that employer cuts spending it's obviously going to have a massive impact on those local economies. It begs the question what the heck were these regions doing not diversifying their economies?