According to a recent warning by UK’s leading business organization CBI, the economic recovery from recession being still “fragile,” there would likely be more job losses facing the country’s workers and increased wage freezes during 2010.

Projecting a weak economic recovery next year, followed by disappointing growth for two successive years, the CBI said that there would only be moderate improvements in the jobless situation and wage settlements.

With the latest unemployment forecast figures indicating towards a 2.8 million peak next autumn, lower than the earlier-projections, with “very constrained” wage growth, CBI deputy director- general John Cridland said the outlook was “brightening.”

Cridland further said that consumer expenditure will witness a plunge early next year, with the VAT rate returning to the full 17.5 percent, before recovering gradually over the next few quarters.

However, Cridland cautioned: “We will need to keep our nerve during early 2010, and there is no sign of a clear driver of strong economic growth. In the spring, many staff will face another cycle of wage freezes, and job losses will continue rising until the autumn.”

Noting that the government will come under further unrelenting pressure to uncover a concise planning pertaining to the return to robustness of the public finances, Cridland said that international credit rating agencies would continue to keep a watchful eye on UK borrowing levels.