40 per cent of public sector companies ‘are undergoing redundancies’

Posted 17/11/2010

More workers in the public sector are facing redundancy thanks to government cutbacks, according to the Chartered Institute for Personnel and Development (CIPD).

Following the release of its quarterly Labour Market Outlook report, bosses at the organisation predicted that two in five public sector workers face losing their jobs.

News of widespread job cuts may lead to more activity in employment law courts across the UK, as workers try to cling to their roles.

However, despite the high level of anticipated public sector losses, the outlook for the private sector is far more promising.

The net employment balance in the private sector has risen from +19 in 2009 to +39, which has encouraged CIPD’s chief economic advisor Dr John Philpott.

“Signs of not only sustained but also increasing buoyancy in private sector job prospects is encouraging, especially since some other forward-looking economic and labour market indicators have been subdued,” he remarked.

A Protection Gap survey from September 2010 showed that almost one in three British workers feared redundancy.