13.02.12
Private sector cuts see rise in unemployment
Unemployment is likely to worsen as the private sector resorts to redundancies, the CIPD suggests. Its researchers predict that unemployment could reach 2.85 million by the end of the year and the number of claims for jobless benefits will rise.
The CIPD surveyed 1,000 employers and found that more were intending to cut jobs than were intending to hire.
Gerwyn Davies, public policy adviser at the CIPD, said: “Whereas employers were in ‘wait and see’ mode three months ago, more private sector firms, particularly private sector services firms, have decided to push the redundancy button in response to worsening economic news. This will exert yet more pressure on a jobs market that is buckling under the strains of contractions in economic growth and public sector employment.
“We have seen the gap between fortunes of jobseekers in the north and south grow due to sectors such as retail, health and social work and construction being the worst affected since the recession. This pattern looks set to continue for the foreseeable future.”
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