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Redundancies look set to rise sharply in the first quarter of 2011 in the public sector as Government cuts bite, according to this quarter’s Labour Market Outlook from the Chartered Institute of Personnel and Development and KPMG. However, job creation in the private sector offers some hope to the overall employment picture.
The survey of 750 employers indicates that overall employment levels, which have held up relatively well in 2010, are heading for a fall in 2011.
Redundancy intentions have risen to their highest level since the survey began across the whole economy and are highest in the public sector where more than half (52%) of public sector employers intend to make redundancies in the first three months of 2011. More than three-quarters (77%) of local government employers plan to make cuts to their workforces.
The report’s twelve-month index, which gives a longer-term perspective on recruitment and redundancy intentions, has also fallen to -9 from +1. One in three (33%) of employers say they will be looking to employ fewer people in 2011 as a result of the Comprehensive Spending Review.