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According to new research by the consultants Capital Economics, up to 440,000 could be lost as a result of the credit crunch - meaning unemployment levels could reach as high as 2.5 million.
Separate research by the Centre of Economics and Business Research (CEBR) found that as many as 350,000 could disappear by April next year. The figure was based on a survey of 120 chief executives at large companies in the UK.
CEBR economist John Ward told the Daily Mail: "This is undeniably the most difficult environment the UK economy has faced for the last 15 years."
Retailers are also expected to cut their payrolls as UK consumers tighten their belts and reduce their spending.
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