The CIPD has published a new report announcing that job losses in the public sector were five times greater than projected for the entire year. The original job loss projection was by the Office for Budget Responsibility. A report by the Office for National Statistics indicates a job loss in the public sector of 111.000 in a three month period.
CIPD is predicting 600,000 more jobs will be lost by 2016. Those numbers are 33 per cent higher than previously estimated. The CIPD report maintains the Chancellor should stop job cuts in the public sector to help maintain and encourage growth in the economy.
CIPD chief economic advisor, Dr John Philpott, stated “With the economy and labour market in such a fragile condition, it is worrying that public sector job losses are turning out to be much greater than ministers have previously been suggesting. “Public sector job cuts in this context are a false economy, adding to unemployment and, in turn, hindering rather than helping the task of fiscal deficit reduction.”
The Treasury released a statement indicating that the job cuts are necessary to the government deficit plan and the cuts will play a vital role in maintaining and encouraging job growth throughout the country.