Public sector job losses higher than forecast - CIPD

Monday, 10 October 2011 09:42

Public sector job losses will be 50 per cent higher than the level forecasted by the government, the Chartered Institute of Personal and Development (CIPD) has claimed.

According to a report by the organisation, the number of jobs lost since April is five times greater than the Office for Budget Responsibility projected for 2011 as a whole.

It called on chancellor of the exchequer George Osborne to stop the current levels of public sector job cuts and questioned his assumption that the private sector will pick up the slack in what is currently a very weak economy.

John Philpott, chief economist at the CIPD, remarked: "It is worrying that public sector job losses are turning out to be much greater than ministers have previously been suggesting. [They] are a false economy, adding to unemployment and in turn hindering rather than helping the task of fiscal deficit reduction.

"A more sensible course would be to delay public sector job cuts to the end of this parliament and if necessary into the next," he added.

Meanwhile, a Treasury spokesman said the cuts were necessary.

"Risks in the global economy make it even more essential to stick to the government's essential deficit reduction plan, which is supported by the International Monetary Fund, the OECD and the CBI," he commented.

The spokesman added: "This plan is essential for sustainable growth and has helped deliver record low interest rates for families."

In addition, a Treasury source told the BBC it was sceptical of the projections made by the CIPD as the body had previously overestimated the UK unemployment peak.

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