CIPD reveals public sector job losses deeper than forecast

| October 10, 2011
”CIPD

According to the Chartered Institute of Personnel and Development (CIPD), more public sector job losses are being axed than originally forecast.

The employers group said 610,000 jobs in the sector will be lost between 2010/11 and 2015/16 – one third more than the 410,000 the Office for Budget Responsibility (OBR) originally predicted.

The group is therefore calling on the Government to “announce a temporary halt to further cuts as part of any broader plan to stimulate economic growth and combat rising unemployment.”

John Philpott, chief economic adviser at the CIPD, said: “A more sensible course would be to delay public sector job cuts to the end of this Parliament and if necessary into the next, thereby enabling them to be absorbed more easily without nasty macroeconomic side-effects.

“The Government’s plan for growth must rightly contain measures to stimulate private sector job creation but the Chancellor should also avoid the own goal of cutting public sector jobs at a time of high and rising unemployment,” he added.

In the meantime, the CIPD is questioning whether the private sector is able to create enough jobs to offset those lost in the public sector.

The job losses come as the Government attempts to slash the budget deficit and the harsh austerity measures have been criticised by many leading business groups, suggesting the cuts will hamper growth, while some have said a double-dip recession is likely.

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