This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-12445050
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Sharp rise in job losses forecast by survey | Sharp rise in job losses forecast by survey |
(about 17 hours later) | |
Redundancies are set to rise sharply in the next few months as public sector cuts bite, a survey has suggested. | Redundancies are set to rise sharply in the next few months as public sector cuts bite, a survey has suggested. |
The Chartered Institute of Personnel and Development study found redundancy intentions with employers were at their highest level since it began in 2004. | The Chartered Institute of Personnel and Development study found redundancy intentions with employers were at their highest level since it began in 2004. |
Four out of 10 organisations planned redundancies in the first quarter of this year, the survey discovered. | Four out of 10 organisations planned redundancies in the first quarter of this year, the survey discovered. |
These included one-third of NHS employers, half of central government and three-quarters in local government. | These included one-third of NHS employers, half of central government and three-quarters in local government. |
The organisations affected typically proposed to cut about one in 10 employees, increasing to one in eight in the public sector. | |
Time of reckoning | Time of reckoning |
But there is hope that job creation in the private sector will bring some relief elsewhere. | But there is hope that job creation in the private sector will bring some relief elsewhere. |
The institute's policy adviser, Gerwyn Davies, described the next few months as a "quarter of reckoning" for the jobs market and a relapse from the recent recovery. | |
He said it was encouraging that private sector employment was expected to keep growing, but nonetheless the institute believed unemployment would continue climbing until 2012. | He said it was encouraging that private sector employment was expected to keep growing, but nonetheless the institute believed unemployment would continue climbing until 2012. |
Some business organisations have argued that job creation in the private sector will be able to offset job losses in the public sector caused by government spending cuts. | |
However, the CIPD study questions this analysis. Richard Jeffrey, chief investment officer at Cazenove Capital Management, told the BBC that the CIPD was likely to be proved right. | |
"The economy needs to grow at a rate of about 2% a year to create jobs in the private sector. It's not yet growing at that rate and I don't think it will grow at that rate this year," he said. | |
He added we could see growth of 2% next year, or possibly not until 2013. "Unemployment is not going to trend downward until [then]," he argued. | |
BBC employment correspondent Martin Shankleman says the survey captures the moment when many job losses threatened across the economy seem about to become reality. | BBC employment correspondent Martin Shankleman says the survey captures the moment when many job losses threatened across the economy seem about to become reality. |
UK unemployment rose by 49,000 to almost 2.5 million in the three months to the end of November, according to the latest Office for National Statistics figures. | UK unemployment rose by 49,000 to almost 2.5 million in the three months to the end of November, according to the latest Office for National Statistics figures. |
Previous version
1
Next version