Labour demand in private sector continues to off-set the sharp fall in demand in the public sector, but not for long, says the latest quarterly KPMG Labour Market Outlook survey
The survey indicates that the employment recovery has stalled, but that the disparity between the public and private sector remains significant. But worse is to come as redundancy intentions have picked up among the 600 employers surveyed, representative of the whole economy.
While recruitment intentions generally remain stable, the proportion of employers intending to make redundancies has increased for the second quarter in succession, returning to levels last seen a year ago. A third of employers (32%) expect to cut jobs during the next three months, up from 29% in the Spring quarter and 26% in the Winter quarter. The survey findings reveal that organisations in the public sector are once again going to be the most affected; a reflection of substantial budget cuts. Over a third of public sector employers (36%) are planning to make redundancies during the next three months, compared to 30% in the private sector and 24% in the voluntary sector.
Alan Downey of KPMG, says: "Managers in the public sector have woken up to the scale of the financial crisis that they face, and many are now contemplating redundancy programmes. Surprisingly, some are still intending to recruit, albeit at a reduced pace. The big question is whether the private sector can create new jobs in sufficient numbers and quickly enough to offset the downturn in the public sector. Are we about to return to strong and sustained economic growth, or will we experience a faltering recovery in which unemployment will rise steadily because of the retrenchment in the public sector? The survey suggests it is too close to call."
APA
The survey indicates that the employment recovery has stalled, but that the disparity between the public and private sector remains significant. But worse is to come as redundancy intentions have picked up among the 600 employers surveyed, representative of the whole economy.
While recruitment intentions generally remain stable, the proportion of employers intending to make redundancies has increased for the second quarter in succession, returning to levels last seen a year ago. A third of employers (32%) expect to cut jobs during the next three months, up from 29% in the Spring quarter and 26% in the Winter quarter. The survey findings reveal that organisations in the public sector are once again going to be the most affected; a reflection of substantial budget cuts. Over a third of public sector employers (36%) are planning to make redundancies during the next three months, compared to 30% in the private sector and 24% in the voluntary sector.
Alan Downey of KPMG, says: "Managers in the public sector have woken up to the scale of the financial crisis that they face, and many are now contemplating redundancy programmes. Surprisingly, some are still intending to recruit, albeit at a reduced pace. The big question is whether the private sector can create new jobs in sufficient numbers and quickly enough to offset the downturn in the public sector. Are we about to return to strong and sustained economic growth, or will we experience a faltering recovery in which unemployment will rise steadily because of the retrenchment in the public sector? The survey suggests it is too close to call."
APA
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