The coalition government had hoped that the private sector would pick up the slack when public sector jobs were shed.

BBC: Unemployment set to rise in 2012, suggests CIPD

The world economy, and all its major players, from the government to the private sector to public households, have failed to pick up the slack.

FORBES: Rich Countries Making World Weaker

The question now is whether, if public spending on construction falls, the private sector will pick up the slack.

ECONOMIST: Building firms are struggling to emerge from the recession