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CIPD predicts public sector recession

Almost one in three public sector employers say they expect to cut jobs in the first quarter of 2010, according to the Chartered Institute of Personnel and Development.

Despite emerging form recession in the last quarter the UK economy is still facing redundancies, a CIPD survey of 700 employers has found. One in four employers across the public and private sectors planned to make redundancies in the first 3 months of the year, cutting 6.2% of their workforce compared with 3.8% in the previous quarter with public sector, defence and public administration being hit particularly hard.

"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," said John Philpott, chief economic adviser at the CIPD.

"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."

The survey also showed that one in ten private companies plan to outsource jobs abroad this year to Eastern Europe and India. This amid slightly more encouraging predictions for the private sector, which expects to increase staff numbers for the first time since the start of the recession.

If you are planning to make redundancies, please speak to employment department partner, Michael Pitt, on 0161 785 3506.

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