Letting The Private Sector Pick Up The Slack From Public Sector Job Losses Highly Unlikely

TUC Report Findings:

  • It could take more than 20 years for some regions of the UK to make up for jobs lost in the recession
  • 1.35 million private sector jobs have been lost since the second quarter of 2008 when jobs peaked at over 31 million
  • 2.2 million private sector jobs will need to be created to get the labour market back to pre-recession levels once the 10% reduction in public sector employment is introduced
  • Private sector employment growth has averaged 0.7% per year over the past decade, therefore it could take up to 14 years to generate 2.2 million private sector jobs
  • Places in the North West could take up to 24 years to return to pre-recession job levels

Brendan Barber, General Secretary of the TUC said that “When the spending cuts start to bite and public sector job losses begin in earnest the Government tells us that the private sector can make up the difference. But there are already many people who have lost private sector jobs chasing every vacancy. And of course spending cuts will cause further private sector job losses, not just because the state will buy fewer goods and services, but those who lose their jobs will stop spending too. Even if the private sector does better than in the past, the spending cuts will condemn us to high unemployment for the foreseeable future.\”

Recruitment Growth Slows to 10 month low

The publication of the report follows the latest REC / KPMG job market survey which shows that contract and permanent appointments slowed to their slowest rate for 10 months.

The Chief Executive of the REC, Kevin Green, said that “We are concerned about the UK jobs market. Growth is rapidly slowing as public sector job freezes start to bite and private sector employers” confidence remains fragile. The young are being disproportionately affected by the worst labour market in over two decades. The report does however highlight the emergence of specific shortage areas, such as chefs, nurses, engineers and internet developers, which will provide opportunities for those with the right skills. A priority for Government is to ramp up the support and guidance for job-seekers and to raise awareness of these growth areas within our labour market.\”

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