More than three-quarters of local authorities planning cuts to workforces
More than three-quarters of local government employers (77%) plan to make cuts to their workforces, according to research conducted by the Chartered Institute of Personnel and Development and KPMG.
The report, Labour Market Outlook, found that:
- Overall employment levels are set to fall in 2011
- Its net employment index – which measures the difference between the proportion of employers that intend to increase total staffing levels and those that intend to decrease total staffing levels in the first quarter of 2011 – had fallen to -3 from +11 in the past three months
- Two thirds of public sector organisations (-66) will be looking to reduce the size of their workforces in the first quarter
- The private sector will generate jobs growth, “with manufacturing (+20) and private sector services (+20) providing the majority of the jobs”
- Redundancy intentions are now at their highest level since the survey began across the whole economy and are highest in the public sector where more than half (52%) of public sector employers intend to make redundancies in the first three months of 2011. More than three-quarters (77%) of local government employers plan to make cuts to their workforces
- The report’s 12-month index had fallen to -9 from +1
- One in three employers (33%) say they will be looking to employ fewer people in 2011 as a result of the Comprehensive Spending Review
- Average pay settlements in the public sector are expected to fall to -0.33% which compares with 2.3% in the private sector.
Gerwyn Davies, Public Policy Adviser at the Chartered Institute of Personnel and Development (CIPD) said: “While private sector jobs generation is encouraging, it’s more important than ever that the government continues its growth efforts in the private sector so as to offset the jobs gloom in the public sector.”
Malcolm Edge, Head of Markets at KPMG, said: “These figures show that there continues to be a marked divide in the UK jobs market, with the public sector still fearing the worst while the private sector shows signs of better health.”
