Demand for Staff rises to highest level in 2010 according to Reed

The Managing Director of, Martin Warnes, said that \”Private sector demand for new workers is accelerating, and has spread across a wide range of areas. And while salaries remain below December 2009\’s level, last month\’s salary decline for new jobs has been reversed. Sustained economic recovery cannot be taken for granted, but the way employers are recruiting and building for the future is certainly encouraging.\”

The latest news comes at the same time as the Office of Budget Responsibility (OBR) has revised its prediction that 490,000 jobs will be lost in the Public Sector. Earlier in the year the organisation said that 490,000 jobs would be lost, however now the best prediction is 160,000 less, at 330,000. Although the predicted job losses are still severe the revised prediction represents a positive move for the UK economy.

The Office of Budget Responsibility’s (OBR) Chairman, Robert Chote, said that \”The economy will continue to recover from recession, but at a slower pace than in the recoveries of the 1970s, 1980s and 1990s. There is considerable uncertainty around any economic forecasts. These are our best guesses and caution is something for policy makers to consider. The OBR has slashed its original forecast for public-sector job cuts by 200,000 for the period to 2015-16 as a whole. However, the OBR’s estimates of likely public-sector job losses is far lower than indicated by managers on the ground and it will be interesting to see if optimism in the public sector workforce now starts to pick up.

Earlier in the year a report by PriceWaterhouseCoopers (PwC) suggested that 500,000 jobs would be lost in the pubic sector due to Government spending cuts and a further 500,000 jobs would also be lost in the private sector due to knock on affects created by the loss of public sector contracts and reduced demand. The PwC report, titled ‘Sectoral and Regional Impact of the Fiscal Squeeze’ predicted losses equal to 3.4% of jobs across the United Kingdom.

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