Latest Public Sector News

18.11.15

A fifth of public employers forecast Living Wage job cuts

More than a fifth of public sector employers say they plan to cut the size of their workforce as a result of the introduction of the National Living Wage (NLW), according to new research. 

The ‘Taking up the floor’ report, published by the Resolution Foundation and CIPD, revealed that despite making up 24% of all jobs, the public sector will make up only 11% of those affected by NLW in 2016 and 14% of those affected by 2020. This is because the private sector has a greater proportion of low-paid jobs than the public sector. 

Of the six million expected to benefit from the NLW, 4.7 million will be in the private sector. But 21% of public sector employers say they were more likely to cut jobs following NLW implementation, compared to only 13% of their private sector counterparts.

The survey of 1,037 employers stated that the consequences of the chancellor’s 1% pay cap for services and recruitment within the public sector were set to be a challenge in any case over this Parliament, but “the introduction of the NLW makes it all the more pressing”. 

Conor D’Arcy, policy analyst at the Resolution Foundation, said the new NLW will have a “huge impact” on the labour market when it comes into effect next April, with millions of workers set to get a pay rise and half of all employers saying they’ll be affected. 

Mark Beatson, chief economist at the CIPD, added: “The NLW was a bombshell for most employers when it was announced in July.  

“It comes into force next April, which does not give employers a lot of time to prepare.  Hence we found 26% of employers in September saying it was still too soon to say how they would manage the cost implications.”

Comments

There are no comments. Why not be the first?

Add your comment

 

related

public sector executive tv

more videos >

last word

The importance of openness after Grenfell

The importance of openness after Grenfell

Following the recent Grenfell Tower tragedy, Lord Porter, chairman of the LGA, argues that if the public are going to have faith in the safety testing process then everything must be out in the open more > more last word articles >

public sector focus

View all News

comment

Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues t... more >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need ... more >

the raven's daily blog

New rules to change the future of Social Value

05/06/2019New rules to change the future of Social Value

The government has announced the introduction of new rules to change the future of social value and make the way housing developers stump up the money for infrastructure both ... more >
read more blog posts from 'the raven' >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >