The first three months of 2011 will be “a quarter of reckoning” for the jobs market, with the number of redundancies across the economy set to rise “sharply” as coalition government cuts start to bite.
According to this quarter’s Labour Market Outlook from the Chartered Institute of Personnel and Development and management consultancy KPMG, the number of both public and private sector employers expecting to make redundancies has hit the highest level since the survey began in 2004.
The employment index has fallen from +11 to -3 over the last three months, which means that the number of organisations intending to hire is now lower than those intending to make cuts.
Two out of five organisations expect to axe jobs this quarter, with the figure rising to 52% in the public sector. A third of NHS Trusts plan to go down this route, half of all central government agencies and a huge 77% of local authorities. The organisations affected intend to lay off an average of 10% of staff, with the figure increasing to one in eight in the public sector.
The longer-term 12-month index is also negative as employers attempt to adjust to the new realities imposed by the Comprehensive Spending Review. It fell from +1 to -9, with a third of employers expecting to make redundancies over year ahead. Three quarters of public authorities anticipate cutting staff compared with one in ten private sector companies.
The CIPD’s policy advisor Gerwyn Davies said: “The first quarter of 2011 was always going to be a quarter of reckoning for the jobs market, and it seems that last year’s modest recovery will be reversed by a modest relapse. Encouragingly, the private sector continues to generate new jobs, but we are some way off the jobs boom that we are all hoping for.”
The findings supported the HR body’s forecast that unemployment would hit 9% or about 2.7 million this year, peaking at 9.5% in 2012, he added.
5 Responses
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It is not surprising because recession isn’t over. But let us still hope that we can recover soon.
Redundancy – sometimes seen as an opportunity
While all career changes are a challenge and redundancy stirs some strong emotions I am finding that some public sector employees are seeing it as a perfect opportunity to do something different and become self-employed. Some enlightened organisations have hired me to run my "Taking the Plunge" programme as part of their voluntary redundancy package. After many years working in an organisation, individuals are excited about the idea of working for themselves but understandably anxious about whether self-employment is right for them and whether they can make it work.
http://www.antoinetteoglethorpe.com
Redundancies – the other victims
Spare a thought for those left behind – the ‘lucky ones’ who remain employed but whose workload will be greatly increased by taking on the duties and responsibilities of those made redundant. Never has caring for that workforce and recognising its contributio been more important.
Outplacement Support should be a central feature of all Redundan
For any organisations setting out on the challenging process of cost savings, reducing headcounts or cutting payroll bills whilst also wanting to maintain some morale and avoid survivor guilt having a good outplacement support process in place from the start is key.
Making sure that people have a chance to have a say during consultation, volunteer for redundancy selection or suggest alternative ways of making savings all help. open and honest communications although difficult throught the process are essential tools in easing the process for all involved.
However the reality we all have to face is that jobs will be lost across the public sector as there simply isn't the money in the national pot to keep spending in the way we have over the last decade, but helping those losing their careers and incomes as a result is the right and moral thing to do.
If you are seeking a provider for external outplacament support from my experience I would advise looking for a package which can be tailored to meet the needs of staff in a flexible way. This should be a personal approach not a one size fits all package. Outplacement support packages should include the basics likes CV writing and interview skills but should also tackle the more sticky issues like how to reduce barries to being accepted into a new sector (from my work with displaced NHS staff this is a serious issue in moving into the private sector), accepting that you maybe a job seeker, changing careers and money matters.
Amanda Heaton www.HRSimply.co.uk
Redundancy support is available
Whilst we are seeing an increase in redundancies and job cuts in the East of England, the support and training from the European Social Fund and EEDA are proving to be a great boost to both employers and employees. The Response to Redundancies (R2R) scheme was renewed for 2011 providing sponsored career’s advice and funding for training to those at risk of losing their jobs. A wide range of employees in every sector have accessed the fund resulting in successful job searches and business start ups in the region.
For further information visit http://www.recrion.co.uk/free.
— Regards Katherine Wiid, Career and People Management Specialist