CIPD expects unemployment to rise

| February 15, 2010
”CIPD

In its latest quarterly survey, the Chartered Institute of Personnel and Development (CIPD) found that the jobs outlook in the UK is gloomy with nearly one in three public sector employers planning to axe jobs this quarter.

Despite the UK emerging from recession in the fourth quarter of 2009, the CIPD said its survey revealed the jobs market was “still on the ropes”.

Its survey of over 700 employers revealed that firms in all sectors plan to shed 6.2% of their workforce in the first quarter of the year, against 3.8% in the previous quarter.

In the public sector, defence and public administration look set to be hit particularly hard.

However, there was positive news from the private sector, which expects to see headcount increase for the first time since the onset of the recession.

John Philpott, chief economic adviser at the CIPD, comments: “Despite the jobs market proving resilient in recent months, this represents a mere pause for breath with the number of redundancies easing in the private sector and spending cuts yet to be felt by large swathes of the public sector.”

He continues: “Unfortunately, there are more testing rounds ahead. Alongside the spectre of deep public spending cuts, the private sector will be dealing with ongoing concerns about productivity, wage costs and inflation.”

Last month, the Office for National Statistics (ONS) revealed that UK unemployment fell by 7,000 in the three months to November to 2.46 million, taking the unemployment rate down to 7.8%.

The ONS is set to report unemployment figures for the three months to December later this week.

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