The Chartered Institute of Personnel and Development found that as much as 10% more employers look to cut staff than recruit in the three months from June. The situation was slightly better than the previous three months, when the figure of firms planning cuts over recruitments stood at 19%. While official jobless data is due to come out on Wednesday, the report still emphasizes that unemployment is likely to hit 3.2 million some time in 2010.
The private sector firms cutting over those recruiting shrunk form 30% to 2 %. But the public sector swayed in the opposite direction with the figure jumping from a mere 3% to 28%. The recession was not the only factor leading to job cuts. Another factor worth consideration was the local authority restructuring.
923 members responded in the research carried out by the CIPD which laid stress on the fact that there might not be great opportunities for new school-leavers. The expected work force reduction was expected to decrease to 4% in comparison to 6.5% in the spring. It was also found that many firms were either cancelling or deferring pay reviews.
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