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

Collaborative working is the key to the future at home and abroad

Collaborative working is the key to the future at home and abroad

David Hawkins, operations director at the Institute for Collaborative Working (ICW), on why ISO 44001 is a new evolution in collaborative working. The past 12 months have seen seismic changes b more > more last word articles >

public sector focus

View all News

comment

An integrated approach to greening public transport

28/04/2017An integrated approach to greening public transport

Dave Pearson, director of transport services at West Yorkshire Combined Aut... more >
Unlocking the combination to criminal justice reform

28/04/2017Unlocking the combination to criminal justice reform

If new mayors want to improve the life chances of their communities, help t... more >

interviews

Maintaining the momentum for further devolution

25/04/2017Maintaining the momentum for further devolution

Ahead of this year’s mayoral elections, Lord Kerslake, the former hea... more >

most read

Shared Services and Outsourcing Week

the raven's daily blog

Engaging voters ahead of May’s elections

24/04/2017Engaging voters ahead of May’s elections

Emma Hartley, head of campaigns at the Electoral Commission, discusses the importance of a collaborative approach to engage voters ahead of this year’s elections.  ... more >
read more blog posts from 'the raven' >

editor's comment

11/04/2017A watershed moment in British politics

The government has now officially triggered Article 50, formally starting the process of Britain’s exit from the EU. How this will affect local government, the wider public sector and the Civil Service remains to be seen, but the likelihood of it being plain sailing with the enormity of the task ahead seems rather unlikely.  It is, therefore, quite appropriate that in this edition of PSE Professor Chris Painter reflects on the profound changes that have taken place in the... read more >