Around 80,000 jobs in the West Midlands will go in both the public and private sectors over the next five years, according to a new report.

Cuts in public sector spending cuts will also hit a wide range of private companies, from cleaners and accountants to delivery firms, builders and factories.

But despite the severity of job losses, the country will avoid a double-dip recession, according to experts PwC, one of the UK’s biggest firms of accountants.

Overall its believes more than 940,000 people in the UK face losing their jobs by 2015.

In the West Midlands, 80,000 jobs will go – with the region’s vital manufacturing sector being badly hit, losing 51,000 jobs nationally.

Mark Smith, Midlands chairman at PwC, said: “Predicted levels of public and private sector job losses will be a drag on the pace of the economic recovery, but should not derail it altogether.”

According to the PwC’s report, almost half a million private sector jobs could be lost nationally as a result of the upcoming public sector spending cuts.

Private sector output could be reduced by around £46 billion a year by 2014/15, due to the impact on suppliers to the public sector.

Combined with the public sector job loss forecasts already issued by the Office for Budget Responsibility’s (OBR), it means nearly one million people nationally could face unemployment due to public sector cuts.

But PwC says there is the chance of some jobs being created as the public sector pushes more work out to private companies and if interest rates stay lower for longer.

Stephanie Allen, Midlands public sector leader at PwC, said: “One sector likely to see growth opportunities from spending cuts is outsourcing, and not only in back office services.”

The Government and public sector organisations could try to cut their costs by using private companies and voluntary sector groups to deliver front-line services.

PwC’s research suggests the worst hit private sectors will be construction and business services, accounting for a total of 290,000 jobs ranging from plumbers and brickies to estate agents, bank staff and call centre workers.

Mark Smith added: “The region’s business services sector will be hit hardest by the cuts – nationally, the sector is facing a potential output loss of around four per cent and around 180,000 job cuts due to reduced public sector demand in current areas of operation.

“The construction sector could see even larger relative cuts with an output loss of around five per cent leading to around 100,000 job cuts.

“This reflects the greater exposure of this sector to cuts in public sector capital investment, which are particularly severe.”