Feeds

Job cuts move from private to public sector

'Getting worse more slowly' as recession is nationalised

Secure remote control for conventional and virtual desktops

Just as confidence is starting to stabilise in the private sector, so employment prospects in the public sector seem to be getting worse.

A survey from the Chartered Institute of Personnel and Development and KPMG found fewer firms are expecting to lay people off, and those that are planning to do so expect to make smaller cuts.

The quarterly survey covered 900 employers in all sectors of the economy found some signs of recovery compared to last quarter. The difference between organisations expecting to hire more people and those expecting to cut headcount is -10 per cent this quarter, compared to -19 per cent last quarter. For private firms the situation is even better - the negative balance is -2 per cent versus -30 per cent in the spring.

But in the public sector this figure has slumped from -3 per cent to -28 per cent.

Employers who expect to lay people off in the next three months are predicting cuts of 4 per cent compared to 6.5 per cent last time.

Expectations of pay rises have fallen to 1.7 per cent, below consumer price inflation, which was 1.8 per cent in June.

The Institute also warned that companies which were cutting staff hours and keeping a lid on pay rises despite falling orders may be preventing job cuts, they were still effectively pushing up unit labour costs and could be hit by a further wave of redundancies if orders do not improve.

Dr John Philpott, chief economist at the CIPD, said: “When it comes to the immediate jobs outlook, the best that can be said is that things are getting worse more slowly. Employment will keep falling and unemployment is still on course to top 3 million in 2010.

“While pay restraint or cuts in hours of work has helped save many jobs that might otherwise have been lost during the recession, holding onto staff when order books are far from healthy pushes up unit labour costs and eats into company profits. This can’t be sustained indefinitely – a weak economic recovery, let alone a double dip recession, might well cause many employers to reassess current staffing levels before too long.”

Andrew Smith, chief economist at KPMG, said the large number of firms either deferring or cancelling pay reviews showed that companies are unconvinced by supposed "green shoots" of recovery.

Figures released last week from the US Bureau of Labor Statistics also found things getting worse more slowly, as 247,000 people lost their jobs in July, compared to 467,000 job cuts in June. ®

Build a business case: developing custom apps

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.