UK jobs prospect to deteriorate: Study

A survey of 1,000 employers has revealed that the UK jobs market is facing its most difficult quarter since the recession due to job cuts in the public sector and redundancies in private sector, warning of a further “widening chasm” between the North and the South.

Moreover, the CIPD said the findings proved its forecast that the UK unemployment rate could reach 2.85m by the end of the year if business conditions don’t improve. The jobless total increased to 2.68m last month and is expected to increase further due to a drop in confidence in the private sector.

According to the report, 37% of employers plan redundancies in the three months to March, which is up from 33% last autumn, and there are lower recruitment intentions, with six out of ten employers not planning to create new posts in the next three months.

Gerwyn Davies, public policy adviser at the CIPD, said, “Whereas employers were in wait-and-see mode three months ago, more private sector firms, particularly among private sector services firms, have decided to push the redundancy button in response to worsening economic news.”

The Trades Union Congress (TUC) general secretary Brendan Barber also said, “Everybody’s worst fears about rising unemployment and a new North-South divide are coming true. We were promised a private sector-led recovery but instead private sector workers are joining public servants in the dole queues.”

SSM/MF/HE

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