Employment outlook improves
Aug 10 2009
The rate of job losses is set to slow as private sector demand for staff stabilises, suggests a new report.
According to a survey by the Chartered Institute of Personnel and Development (CIPD), 24 per cent of employers intend to increase staff levels in the next three months, while 34 per cent will reduce headcount. This results in a balance of minus ten per cent compared to -19 per cent in the spring quarter.
John Philpott, chief economist at the CIPD, says: ‘When it comes to the immediate jobs outlook, the best that can be said is that things are getting worse more slowly. Unemployment is still on course to top 3 million in 2010. And it is far too soon to rule out another avalanche of private sector redundancies later in the year.’
Employment expectations are stabilising in the private sector as it reports a balance of minus two per cent, up from -30 per cent in the spring. By contrast, the employment outlook in the public sector has deteriorated from minus three per cent to -28 per cent.
Of the 900 employers asked, only 15 per cent of respondents intend to conduct a pay review this quarter.
A recent survey from the British Chambers of Commerce suggests that more than half of companies will make redundancies in the next six months.
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