Public spending cuts are likely to add to the problem of unemployment for IT contractors and other job seekers.

This is the view of Martin Bamford, chartered financial planner at Informed Choice, who claims that the jobs market remains difficult for many people looking for vacancies.

Mr Bamford says that it is difficult to see how the public sector can go through its cuts without shedding a number of jobs - positions which the private sector is not yet ready to absorb.

He explained: "After making provisions for short-term unemployment, it is important to think about the long-term.

"If you find yourself unemployed, because of circumstances such as redundancy, it can be quite difficult to plan for the longer term."