Analysis: Private sector fails to offset public sector jobs cull as unemployment soars
Unemployment hit 7.9% in the three months to July, marking the largest quarterly increase since 2009, as public sector job cuts of 111,000 far outpace the private sector’s ability to create new employment.
Cap is not damaging economy, says immigration advisor
The UK’s immigration cap shows no evidence of damaging the economy, though it’s creating employment challenges in the public sector, according to the government’s chief immigration advisor. The Migration Advisory Committee recommends closing 70,000 jobs to non-EEA workers while keeping specific skilled roles open to migrant workers.
Skills shortages and unemployment to remain endemic, warns study
A joint study warns that the UK’s education system fails to meet industry needs, leaving skills shortages and unemployment as persistent problems. Unless schooling better aligns with growth sectors like green energy, healthcare, and digital services, these issues will intensify, particularly at entry and intermediate skill levels.
Engineering suffers from lack of jobs not skills, says study
A Birmingham University study challenges claims of an engineering skills shortage, finding that fewer than half of engineering graduates work in the field six months after graduation. Researchers suggest the real problem is a lack of available jobs rather than insufficient skilled workers.
“Millions” of public servants to strike in November, warns union
Civil service union leaders have agreed to organize a second strike in November over public sector pensions, with officials warning that millions of public servants could participate. The TUC said it is prepared to coordinate nationwide industrial action if government talks on pension reform fail.
Outsourcing and shared services will get bobbies back on beat, claims report
A Policy Exchange report argues that outsourcing and shared services could save British police millions of pounds by redeploying officers from back offices to frontline policing roles. The study claims taxpayers have spent at least £500m since 2006 on non-frontline police positions and recommends linking future funding to efficiency savings.
Does performance-related pay provide value for money?
Performance-related pay has failed to deliver better company results, according to research showing executive bonuses soared 700% since 2002 while share prices grew only 21%. Studies reveal performance pay schemes offer little motivation for average workers due to minimal award increases and provide limited value for money across organizations.
First 2,000 armed forces personnel are axed
Nearly 2,000 armed forces personnel face redundancy following the coalition government’s Strategic Defence Review, with the army releasing 920 soldiers and the RAF dismissing 930 staff. The cuts, part of a planned 22,000 personnel reduction over four years, have sparked controversy particularly over the disproportionate impact on Gurkhas.
Going for gold – the role of HR in Olympic tenders
Companies bidding for Olympic contracts must navigate a stringent three-stage procurement process overseen by the Olympic Delivery Authority, with HR playing a critical role in the qualifying stage. Bidders are evaluated on employment practices, equality compliance, health and safety standards, and sustainability alongside cost and functionality, with weightings varying by contract.
Blog: Is more home-working the Olympics’ legacy for employers?
London 2012 prompted major employers to reconsider flexible working arrangements to ease expected transport chaos during the Games. This shift toward remote work and flexi-time may create a lasting legacy, with organizations reassessing work practices beyond the Olympic period.
Birmingham Council to hire out staff using workforce planning tool
Birmingham City Council is using its new “Talent Net” workforce planning tool to identify and retain critical staff while managing thousands of job cuts. The framework will also enable the council to commercially hire out workers to other local authorities, helping offset expenditure reductions of £300 million.
Modern Workplaces consultation: the view from payroll
The Chartered Institute of Payroll Professionals surveyed members on government proposals for modern workplaces, including flexible parental leave, flexible working rights, and equal pay measures. Payroll professionals raised significant concerns about administrative burdens, fraud prevention, and the challenges of organizing staff cover under more flexible arrangements.
Goldman Sachs takes away bankers’ two-year old pay rise
Goldman Sachs is cutting salaries for hundreds of London bankers by phasing out pay increases granted in 2009, using a contractual clause as market conditions tighten. The move follows the bank’s 9% reduction in salary budgets and planned elimination of 1,000 jobs globally.
Digital and social media specialists’ wages soar 70% in three years
Senior digital and social media specialists’ wages have surged nearly 70% in three years as companies shift marketing budgets online. Head of Search roles now average £75,000 annually, up from £45,000, driven by high demand in financial services and retail sectors.
Coulson paid by NotW while working for Prime Minister
Former News of the World editor Andy Coulson received two years’ severance pay from News International while serving as the Prime Minister’s communications director, triggering calls for an Electoral Commission investigation into potential undeclared Conservative Party funding.
Cycling staff saved employers £128 million last year
Cycling saved UK employers £128 million last year through reduced absenteeism, according to a London School of Economics report. The study found the cycling industry contributes £2.9 billion annually to the UK economy, with regular cyclists taking fewer sick days than non-cyclists.
Blog: Got sick while on holiday?
If you fall ill during scheduled annual leave, you may be entitled to reschedule your holiday and take sickness leave instead. Recent government proposals aim to clarify UK employment law on carrying over unused leave and sickness-related absence.
School leavers lack necessary workplace skills
Nearly half of UK employers lack confidence hiring school leavers, with a survey of 2,000 micro-companies revealing a significant skills gap between what businesses need and what young people bring to the workplace.
Part-time worker numbers hit record high
Part-time worker numbers hit a record high as unemployment rose to 2.49 million, driven by a shortage of full-time jobs. Female unemployment surged particularly sharply, reaching its highest level since 1988, while jobless benefit claims jumped to levels unseen since 2009.
Second wave of enterprise zones to create 30,000 high-tech jobs
The UK government announced 11 additional enterprise zones across England, bringing the total to 21, aimed at creating 30,000 high-tech jobs. New businesses in these zones will receive £150 million in tax breaks over four years plus broadband access, with each zone specializing in specific industries like aerospace, biotechnology, and offshore wind energy.
