Job cuts on the rise
Cuts start to bite
Posted in Management, 14th February 2011 09:15 GMT
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The number of companies expecting to make people redundant in the first quarter of this year is expected to rise sharply.
Figures from KPMG and the Chartered Institute of Personnel and Development show private sector jobs might help offset public sector cutbacks - but overall two out of three employers expect to have less staff in 2011 than they had in 2010.
There is a sharp difference between public and private sector - 66 per cent of government organisations expect to cut staff in the first three months of the year.
Meanwhile the outlook for jobs in the private sector varies widely. About 20 per cent of manufacturing and services companies are expecting to increase headcount in the first quarter.
Gerwyn Davies, public policy advisor at the 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."
More employers are expecting to cut jobs than at any time since the survey was started in spring 2004.
Overall the numbers, taken from a survey of 750 employers, showed the difference between bosses expecting to hire staff versus those expecting to let people go has fallen from +11 to -3 since last quarter.
You can download the CIPD's employment numbers here.
The gloomy jobs market is also hitting pay settlements. Average pay settlements in the public sector are expected to fall 0.3 per cent, compared to 2.3 per cent increases in the private sector. ®
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COMMENTS
AC... → #
Having worked on contract for a Health Quango it seemed to me their main purpose was to work out how to spend their allocated money thus inventing justification for their jobs.
Health service IT also seems to suffer from a peculiar situation whereby at least three or four entities both public & private are funded to do exactly the same thing and nearly all are providing poor service for extortionate fees.
The worst offenders for waste in the NHS are private sector outsourcing companies, the big name global corporates who feel justified in charging absolutely massive fees for extremely trivial systems which could be implemented and managed for a fraction of the cost.
AC...
You know nothing about Local Government, and your post shows this in spades.
I work for a local Authority, and the moment the credit crunch hit we stopped recruiting. We've seen our service reduce significantly in staffing, and yet we've changed to offer improved services. And yet we're still being hit with reduncancy and retirment.
I get paid less than a friend who works in private sector, who does a similar job to me. I look after about 50 staff he looks after far less. He got a 12% payrise this year, i got 0.25%.
As for my Pension, keep you mits off, I work bloody hard for what I get paid.
I suggest you try to work in a sector such as Local Authority, where Government/local Elections/Councillors whim mean restructures and changes of direction every couple of years and see how good a job you can do.
Considering the way we're made to work its a wonder anything gets done.... I hope in the future we're allowed to work like a business. Sure your services will cost more, but you'll get more, a lot more.
Economics: Just made-up science.
Would these be figures based on a report that surveys a whopping 750 employers?
Last March there were 2.10 million businesses in the UK (http://www.statistics.gov.uk/cci/nugget.asp?id=1238).
The headlines /should/ say "KPMG and CIPD interviewed 0.036% of employers and made some pointless generalisations based on that tiny sample in a desperate effort to whore themselves about and gain more attention".
Looks like their gamble's worked, eh?
flaming heck...
The private sector has people 'investing' and expecting a 'return on investment', as in 'free money' or 'profit' from the provision of services are somehow cheaper than the public sector who need to make no profit.
This is balls, always has been.
If the public sector is inefficient then sack the useless bunch of managers, the lazy workers etc. and put in new people. 20% of the 16-64 year old population of this country are not working so there are plenty of candidates out there.
We have seen from the various Thatcherite and later Blair/Brown privatisations that what it really means is a couple of years of looking good followed by massive pay hikes, massive cost hikes, huge subsidies, massive profits and the poor old consumer being forced (often by use of the law) to pay far more for basic essentials.
I agree the current public sector does need a massive slim down and a huge change in efficiency, but privatisation is NOT the way forward - a large hatchet to the salaries and jobs in the public sector is. I would first off just take 7 out of 10 management jobs and scrap them followed by 3 out of 10 in all other 'ranks'. Then see where we are after a year.
its the purchasing system
Having tried to bid for some government / nhs work....
a) You HAVE to be a company of at least multi million size
b) You HAVE to be a company with several decades history
c) You HAVE to be a company who has implemented something similar (even if it wasn't good)
d) You preferably should be foreign and employing foreign workers.
They explain (a) and (b) as meaning you will be around to support the mess you create... yet as we all know there is a very good chance of even big companies going out of business
(c) is explained as 'knowing what you are doing' but we also know that big companies lose people, move people to other projects and may employ totally 'new' people on any given project
(d) is just fact - unexplained, but lets face it this applies to all UK government contracts these days - while Able marine are bringing American ships here to cut up our own government is spending UK tax payers money employing EGYPTIANS via a BELGIUM company to chop up the perfectly serviceable Ark Royal.
What all of this means to the UK is high unemployment and very expensive contracts.
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