The emergency budget has come and gone and now the realisation of what effect these policies will have is setting in. For public sector recruitment agencies it does not make pleasant reading as predictions of unemployment rising to 3 million by 2012.
The forecast came from the Chartered Institute of Personnel and Development (CIPD). This is on the back of today’s unemployment figures dropping by 30,000 in the 3 months to May to 2.47m but with the expectation of substantial public Sector jobs to go, it was worked out that the economy would have to grow by 2.5% a year so that the private sector to accommodate all the job losses. The OBR predicts only a 1.2% this year and only reaching 2.5% after 2.12.
Police jobs are particularly under threat, with funding cuts that could lead up to 60,000 police officers to go by 2015. The figure was based on the Treasury warning departments that there could be as much as 40% cuts.
A separate study showed further worrying news for employment agencies, with jobs in construction, science and manufacturing at half the levels the same time last year.
It seems that with radical shake up happening across the public sector, we all have to brace ourselves for what can be a bumpy ride. If however in a few years time the finances and the operations of many public sector departments are running at similar levels but with half the costs involved then surely it will be seen as a victory for ConDem…. but that is a big if.


