2/3 public sector ‘would take pay cut’
Nearly two-thirds of public sector workers would accept pay cuts to keep their jobs, according to a survey, with unemployment expected to exceed 10% outside London and the South of England. The shift reflects growing job insecurity since the coalition government took power.
21st century training: get better value
Tightening training budgets forces organizations to prioritize measurable results over hours spent, creating an opportunity to modernize skills development for 21st-century demands. By shifting focus to practical, outcome-driven programs like apprenticeships, businesses can develop more capable, motivated workforces despite reduced investment.
Unemployment set to get worse for young and old
Unemployment is worsening for young and older workers despite official statistics showing overall job gains, with part-time positions rising and wage growth slowing. Public sector cuts expected in autumn could exacerbate the situation, particularly affecting women and creating a “lost generation” of disengaged youth.
Business to be consulted on public spending
Skills Minister John Hayes has launched public consultations on how to allocate scarce public resources to meet employers’ needs. The consultations examine skills priorities, funding allocation, and how government should support learning while encouraging private sector investment and cost-effectiveness.
CIPD in ‘wildly inaccurate’ policy paper row
The Chartered Institute of Personnel and Development (CIPD) faces criticism over a policy paper on education and skills quangos, which was branded “wildly inaccurate” and removed from its website. Multiple organizations cited in the report disputed its findings, prompting the CIPD chief executive to apologize.
Recession over but pay still low
Most workers who took pay cuts during the recession haven’t seen wages restored even though the UK economy has recovered. With only 15% promised full pay restoration, employers are turning to flexible working and training to retain staff.
Job deficit to last five years
The UK faces a five-year jobs deficit despite slightly falling unemployment, according to HR body CIPD warnings. While jobless claims dropped and part-time work surged, full-time job creation remains weak, with economic growth below forecast potentially resulting in significant job losses through 2015.
Government may plug BT pensions
BT’s pension fund trustees are pursuing a High Court ruling to determine whether the government should underwrite the company’s £9 billion pension deficit through a crown guarantee. A favorable ruling could allow BT to reduce its substantial annual pension contributions and increase shareholder returns, while an unfavorable outcome may require faster deficit repayment.
Work-related illnesses cost UK economy £36bn
Work-related illnesses cost the UK economy nearly £36bn annually, despite workplace fatalities falling to historic lows. While fatal injuries dropped 31% below the five-year average in 2009-2010, non-terminal conditions caused by poor working practices remain a significant economic burden.
Whitehall HR to be unified
Ian Watmore has been appointed to lead a cross-departmental group tasked with creating a unified HR strategy across Whitehall. As chief operating officer of the Cabinet Office’s Efficiency and Reform Group, he will work to find £6.2 million in savings across government departments and ensure coordinated cost-cutting efforts.
Unemployment set to soar
Leaked Treasury estimates show the coalition government’s austerity budget could result in 1.3 million job losses over five years, with 500,000-600,000 posts cut in the public sector and 600,000-700,000 in the private sector. Economists question whether promised private sector growth can offset these losses.
NHS not so ‘protected’ after all
NHS Trusts are already planning redundancies and service cuts despite government promises to protect front-line services, a BMA survey reveals. Nearly two-thirds have implemented recruitment freezes affecting medical and nursing posts, while 72% report postponing clinical initiatives for financial reasons.
Emergency budget – what it means for HR and employers
An emergency budget delivered by Chancellor George Osborne introduces £32 billion in spending cuts and an £8 billion tax hike by 2014-15, creating significant management challenges for HR and employers, particularly in the public sector. The budget includes incentives for private sector growth, including employer National Insurance contribution exemptions for new businesses outside London and the south-east.
Budget must invest to tackle skills gap
An employer’s body is urging the government to invest in skills training to address a significant shortage in the manufacturing sector, which has 3,500 job vacancies and 44,000 workers with skills gaps. Proskills recommends matched-funding approaches and schemes like the Joint Investment Programme to help training providers and small-to-medium businesses develop relevant qualifications and transferable skills.
Public sector HR braces for storms ahead
Public sector HR managers face potential upheaval as government debates radical changes to pay and pensions. The CIPD calls for performance-related pay, regional pay variations, and pay bill freezes to drive reform while managing public sector costs.
CIPD: unemployment to hit three million by the second half of 2012
The Chartered Institute of Personnel and Development warns that government spending cuts will push unemployment to three million by late 2012, with public sector job losses expected to reach 725,000 over five years as the deficit reduction strategy relies heavily on cuts rather than tax increases.
Long term planning essential for business recovery
UK employers must adopt long-term workforce planning to ensure sustained business recovery, warns the Chartered Institute of Personnel and Development. Despite mild optimism about job prospects, only a minority of companies plan beyond one to two years, risking their ability to meet future talent needs.
Recession successes invested in training
Organisations that increased training and development spending by an average of 6.2% during the recession significantly outperformed those that cut budgets, according to research among UK employers. However, nearly half prioritised cost-cutting over learning investment, despite clear evidence linking L&D spend to financial performance.
Leadership training should be a ‘national priority’
The Chartered Management Institute urges employers to prioritize leadership training as a national strategy to drive economic growth in Northern Ireland. By 2020, most jobs will require formal qualifications and advanced skills, making investment in workforce development essential for competitive advantage.
‘Recession stress’ costs employers £26 billion
Work-related stress and depression cost employers £26 billion annually, with recession-driven job insecurity forcing staff to work longer hours and compete with colleagues. A Mind survey found one in ten workers sought GP support, while nearly half experienced low workplace morale and significant mental health impacts.
