Sainsbury's promises 20,000 new jobs at 'growth summit'

Mr Cameron, who wants a surge in private sector employment to "rebalance" the economy amid extensive job cuts in the public services, told business chiefs his administration would pursue "the most pro-business, pro-growth, pro-jobs agenda ever unleashed by a government".

But he was accused of betraying young workers by Labour leader Ed Miliband, who warned that Government policies risk creating a "lost generation" of unemployed young people.

And unions voiced concern over claims that ministers are planning an "employers' charter", watering down employment rights in a bid to encourage recruitment and bolster economic recovery.

There was no official confirmation of reports that workers will have to wait two years before being protected against unfair dismissal and will be required to pay a fee when lodging an employment tribunal claim.

Downing Street said only that Vince Cable's Business Department was undertaking a review of employment regulations to ensure that they are "fair to employees but also that we minimise the burdens on employers".

But Bob Crow, general secretary of the RMT transport union, said it appeared Mr Cameron was drawing up a "bad bosses' charter that will strip workers of hard-earned rights and allow employers to treat their staff like dirt".

Mr Crow added: "With hundreds of thousands of people facing the loss of their jobs in the austerity cuts this year it is now crystal clear that the Government intend to give bosses the right to hire and fire at will... The trade unions will fight these moves every step of the way."

Sainsbury's was among several firms at yesterday's summit hoping to expand its workforce over the coming year. Chief executive Justin King said that the 20,000 full and part-time posts in the group's supermarkets and convenience stores would "provide a huge boost to communities across the UK".

Morrisons announced it would create 5,700 new jobs by opening new stores and 300 in manufacturing, while Tesco predicted 9,000 extra posts, the Co-op 1,000 and Asda 15,000 retail apprenticeships.

Others included John Lewis and Microsoft (4,000 each), Centrica (2,600), InterContinental Hotels (about 1,000) and Kingfisher (several hundred).

Mr Cameron said the new jobs came on top of 300,000 posts created in the private sector over the past six months.

"We can only get our economy back on track by creating a

climate in which the private sector can grow and develop, creating jobs and opportunities for people across the country," said the Prime Minister.

But Mr Miliband told a press conference in London shortly before the Downing Street summit: "If Mr Cameron is

really concerned about jobs, he should address the dangers of a lost generation of young people.

"He should think again about his decision to abandon the Future Jobs Fund and the 100,000 additional jobs it would have offered to young people out of work."

The Future Jobs Fund was launched by the previous Labour government to respond to a rise in youth unemployment in 2008 and 2009 and was used to fund temporary jobs, mainly for 18 to 24-year-olds who had been out of work for over six months.

Nearly one in five young people are unemployed.

Risk of recovery setback 'still serious'

Economic growth pulled back sharply in the fourth quarter of 2010 and the risks of a setback to any recovery remain serious in the year ahead, the British Chambers of Commerce said yesterday.

The BCC's latest quarterly survey signalled gross domestic product growth slowing to around 0.4 or 0.5 per cent in the final three months of 2010.

This would be a marked slowdown on the 0.7 per cent recorded in the third quarter and comes after a "disturbing" recent performance from the services sector, compounded by last month's Arctic conditions.

BCC chief economist David Kern said while the private sector was expected to be robust enough to withstand Government spending cuts, the fourth-quarter performance in the service sector showed the threat still posed to recovery.

He said: "Unless reversed, weaknesses in services could have adverse consequences, particularly for jobs. While we expect the private sector to prove sufficiently robust to withstand the impact of the tough deficit reduction programme, the UK recovery is fragile.

"Risks of a setback will be serious in the next few quarters."