Unemployment in UK To Rise As Public Sector & Private Sector Reveal Plans To Make Jobs Redundant
Source: eGov monitor - A Policy Dialogue PlatformPublished Monday, August 9, 2010 - 09:26
New Research from CIPD released today shows that UK employment growth has stalled and contrary to government expectations the private sector would not be in a position to offset the layoffs in the public sector.
In fact, almost 33% of all employers, across the government and private sector have revealed that they plan to make some staff redundant in the next quarter and the number of jobs to go has increased. This is an increase from the last quarter where 29% of employers were looking to make job cuts.
Almost 36% of Public sector employers are looking to make job cuts which is more than their private sector counterparts - and almost 5.5% of the workforce across sectors might become redundant in a quarter reveals the survey from CIPD and KPMG. The public sector would be hardest hit with almost 8% of the workforce face the redundancy threat.In the budget narrative, the coalition government had claimed that the jobs lost in the public sector would be offset with the demand from the private sector, however, the survey reveals that 30% of private sector employers are looking to cut jobs this quarter an increase of 6% from the previous one.
"The employment situation looks like a case of the good, the bad and the ugly. Most striking this time is that, while the number of employers planning to make redundancies is similar to that in the Spring report, this trend masks the true extent of forthcoming job losses in the third quarter of the year as the proportion of the workforce that will be affected by these redundancy programmes has jumped by 50%.," said Gerwyn Davies, public policy adviser at the CIPD.
"The CIPD believes that a rise in unemployment in the next two years remains a distinct possibility as the private sector recovery is offset by the 600,000 public sector job losses the Government expects over the next five years," he added.






