Recruitment, Welfare to Work

– CIPD pessimistic on employment recovery in 2011

CIPD pessimistic on employment recovery in 2011


The latest Labour Market Outlook from the Chartered Institute of Personnel and Development predicts that the employment recovery in 2010 will not be sustained during 2011. Their quarterly report produced with KPMG is based on a survey of 759 HR professionals and measures employers’ intentions for staffing and pay in the coming quarter.

This will be sobering news for all involved in delivering the Work Programme.

The report found that net employment intentions (being the proportion of employers planning to increase staffing levels and those planning to reduce them) had become negative for the first time in a year. While the private sector continues to grow, employment intentions in the public sector have been in negative and have continued to fall. Furthermore more than half of public sector organisations plan to make redundancies in the first quarter of 2011.


CIPD believes that unemployment may continue rising into 2012 painting a pessimistic picture of the UK labour market in comparison to the predictions of the Office for Budget Responsibility. The OBR produces its own labour market forecasts and predicts that the total number of people in work will be 100,000 higher at the end of 2011 than at the end of 2010.


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