You are here > Home > News


Public sector cuts set to damage UK economic recovery

General News |  02/09/2010
Public sector cuts set to damage UK economic...The effects of public sector cuts are likely to be felt for at least the next two years, it has been claimed.

Stephen Overell, associate director of The Work Foundation, said the labour market is likely to take something of a hit during the latter stages of this year, particularly after the Comprehensive Spending Review in November.

He said it is impossible to say at this stage what the full effects of reduced government spending will be, but a reduction in jobs vacancies is more than likely.

"There are lots of employers that have been cutting staff even before they know exactly where the cuts will fall," Mr Overell noted.

However, job losses are unlikely to be spread evenly across the UK, with some areas being more affected than others.

Mr Overall claimed that in the north of England, where a high proportion of the local labour force is now employed in public services, the cuts will be felt the most.

"It is also true that they often have the weakest private sectors," he added.

"The private sector won't be able to absorb all the people made redundant in the public sector in the wake of the cuts. So that is important as well."

Some northern cities, York for instance, are likely to escape the worst of the coming public sector recession, Mr Overell noted, but others such as Hull could be badly affected.

The reasons for thee variations are routed in history, with Hull in particular suffering from the decline in its traditional local fishing industry.

According to figures by the Office for National Statistics, the employment rate for those aged from 16 to 64 for the three months to June 2010 was 70.5 per cent, up 0.3 per cent on the previous quarter.

Posted by John Lynes


HR Recruitment Agency - Transparent Recruitment Fees Since 1999 - 12.5% Fee / 3 Month, 100% Rebate.

Sign up to our e-newsletter service to receive our headline news directly to your inboxADNFCR-1914-ID-800048872-ADNFCR
Web Analytics