New research by the Chartered Institute of Personnel and Development (CIPD) has uncovered the chilling future. Out of every ten companies, four will cut back their personnel in Q1 of this year.
KPMG and CIPD’s Labour Market Outlook for the quarter showed that of the public sector companies, 66% will cutback their labour force in this quarter, but 52% of those will complete the action by March.
The opposite is true of hiring new personnel. 33% of companies blame the Comprehensive Spending Review as the reason they will not hire new employees this year at all.
Public Policy Advisor for CIPD, Gerwyn Davies, reported, “Even though last year we experienced moderate recovery, we knew all along that the first quarter of 2011 would be the reckoning time. However, the private sector is still somehow, creating positions. Still, it cannot change the course of things all itself.”
He continued, “It is indeed a sparkle of hope, but Government must do its part to counteract the slump in the public sector.”