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Monday 10th of May 2010
February 9, 2009    

36% of UK employers planning job cuts in Q1

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by Kay Murchie
”36%

A survey has produced an alarming account of the UK’s job prospects with 36% of UK employers proposing to cut jobs in the first three months of this year.

The latest Labour Market Outlook (LMO) survey, carried out by the Chartered Institute of Personnel and Development (CIPD) and consultancy firm KPMG, questioned 892 UK employers.

The CIPD’s chief economist, John Philpott, said the figure is double the proportion expecting to make job cuts at the time of the last survey in autumn, suggesting that job prospects are deteriorating at an alarming rate.

While the survey showed that 36% of employers are planning to axe jobs, 27% plan to recruit staff. However, this is the first time that a larger proportion of employers plan to reduce their workforce than take staff off since the survey started in 2004.

Meanwhile, the survey also discovered that employers are cutting back on pay rises; one in eight employers will not carry out a pay review this year, while those who are planning pay reviews will increase on average by 2.6%, much lower than the 3.5% average increase expected in the last survey.

Official figures due out later this week are expected to confirm that unemployment exceeded the 2 million mark at the end of 2008.

Finally, the Bank of England’s quarterly inflation report due to be published on Wednesday, is expected to bring with it a grim assessment for the UK economy.

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Tags: CIPD, employers, job cuts, , Labour Market Outlook, , ,