Redundancy rate ‘could jump by 50 per cent’

Posted 12/08/2010

New figures have revealed that the UK’s redundancy rate could increase by 50 per cent, taking it back to levels last seen during the recession last year.

The Chartered Institute of Personnel and Development’s (CIPD) Labour Market Outlook has shown that 32 per cent of employers intend to cut jobs over the next three months, up from 29 per cent in the spring quarter.

Furthermore, these managers expect to reduce their workforce by 5.5 per cent, a 50 per cent leap over the last three months.

Gerwyn Davies, public policy adviser at the CIPD, commented: “This is being driven chiefly by public sector organisations, where redundancies will affect almost 8 per cent of the workforce.”

Back in May 2010, a poll by Hays found that two-thirds of Britons believe the government needs to fund redundancy support programmes to help people who lose their jobs get back into employment.

Some 82.2 per cent said career guidance or interview advice should be compulsory for people who have been dismissed.