A surge in the number of businesses planning to create redundancies is expected this quarter, according to new figures.
The CIPD/KPMG Labour Market Outlook (LMO) found that two in five employers intend to make redundancies – the highest figure since the survey began, and an increase from 17% in 2007.
The report added that a quarter of employers expect to cut their workforce by at least 10 staff, with redundancy intentions strongest in the public service sector, where nearly half of employers are expecting to make lay-offs.
Workers in the East Midlands, the West Midlands, and the South West are most likely to be dismissed, with employees in Scotland, Wales and Northern Ireland set to be safest in their jobs.
The report also found that employers are frustrated with the lack of skills available to them, with 54% anticipating recruitment difficulties this winter, compared to 49% in the autumn.
John Philpott, chief economist at the CIPD, said: “A substantial number expect to trim their workforces, in the private sector because they are being squeezed by a combination of tougher trading conditions and higher costs, and in the public sector because they are being required to make further efficiency savings and cope with tighter budgets.”
However, he added that there is still hope for the labour market.
“With net recruitment activity still positive, signs of mounting employer pessimism shouldn’t be read as evidence of a jobs market approaching meltdown.
“It does suggest that the UK is entering a period of slower employment growth and somewhat greater job insecurity than in recent years,” he said.
© Crimson Business Ltd. 2008
