Job market progress ‘won’t last’

By staff

Britain’s economic recovery is likely to be set back by the ‘stalling’ of the jobs market, a survey has warned.

Research by the Chartered Institute of Personnel and Development (CIPD) and accountancy firm KPMG suggested the recent improvement in unemployment – which fell to below 2.5 million in the three months to May – would not last.

It found 36% of public sector firms were looking to make redundancies, with an overall balance of minus 35%.

Conditions in the private sector were better, with a rating of plus 19%.

“The employment situation looks like a case of the good, the bad and the ugly,” the CIPD’s public policy adviser Gerwyn Davies said.

“While the number of employers planning to make redundancies is similar to that in the spring, this trend masks the true extent of forthcoming job losses in the third quarter of the year.”

He added that the trend was being driven chiefly by public sector organisations and predicted redundancies here would affect almost eight per cent of the workforce on average.