Rising redundancy risk ‘impacting on workers and economy’

Posted 25/01/2010

Workers across the UK are finding their lifestyles threatened by the rising risk of redundancy, according to new research.

New statistics from the Chartered Institute of Personnel and Development (CIPD) show that more than 1.3 million people have been laid off since the beginning of the recession.

According to the body, this has resulted in around two-thirds of those affected being forced to take up a lower-paying job, with salaries dropping by an average of 28 per cent.

Dr John Philpott, chief economic adviser, warned that this trend is likely to negatively affect views of employment and consumer confidence, which can lead to continuing poor economic conditions.

He said: “It is evident that the direct experience of redundancy, repeat spells of unemployment and pay penalties has been widespread.”

Earlier this month, University of East Anglia finance lecturer Dr Jerome Healy told the Eastern Daily Press that public workers in Norfolk are facing increasing redundancy risks due to cutbacks.