The Chartered Institute of Personnel and Development (CIPD) says that unemployment rates will increase sharply as the public sector feels the impact of cost-cutting. Dole queues will increase to 2.8 million in the second half of the year, a rise of up to 50,000 a month.
The CIPD found that those employers who intended to make redundancies were planning to axe 6.2 per cent of their workforce in the first three months of 2010 link is here
This is somewhat interlinked with my last posts in that in the presence of too many graduates the government has been filling the holes in the system with public sector jobs, it has to in that otherwise the unemployment would be even worse. In that private companies don't care about unemployment and joblessness is sometimes beneficial to them in that it lowers their costs. There are so many desparate individuals out there people will work for a pittance or even illegally for those unpaid internships I mentioned a while ago.
The cuts are needed to balance the books, question is if the private sector is shedding jobs as it did before, and the public sector is shedding jobs. AND just to kick us while we are down more outsourcing is planned then it seems that nobody will be hiring. That people will be stuck between a rock and a hard place, sorry to cliche but thats exactly their circumstances.
Oddly enough this may lead to a bigger tranche of officially unemployed in that one statistic that is not being mentioned here is that 1 job loss may equal 2 signing on. How many in the public sector who are about to lose there jobs currently have an out of work partner who isn't on the unemployment figures?
Interesting times (as in the Chinese curse) appear to lay ahead...
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