Fall In Employment Likely in First Quarter

A new survey of 750 employers, carried out by the Chartered Institute of Personnel and Development (CIPD) and KPMG, has found that employment figures could fall in the coming months.

Although some private sector jobs growth is likely to occur, it is not expected to make up for losses in the public sector. Two thirds of public sector organisations said they will reduce job numbers in the first quarter of 2011, with the average cut totalling 13 per cent of all jobs.

The CIPD said that the results of its survey support earlier predictions from analysts that unemployment rates will reach nine per cent this year, peaking at around 9.5 per cent in 2012.

Some job creation in the private sector services and manufacturing industries is expected in the first quarter of the year, according to the survey results. This will mean there will be some opportunities offered to hopefuls through recruitment agencies and online recruitment routes. However, this is unlikely to significantly make up for the losses in the public sector.

Gerwent Davies, CIPD’s public policy adviser, stated, "The first quarter of 2011 was always going to be a quarter of reckoning for the jobs market, and it seems that last year’s modest recovery will be reversed by a modest relapse."

Encouraging Geoff Newman, chief executive of online recruitment company Recruitment Genius feels “January has been the companies most successful month with the private sector experiencing strong growth. Specifically we are noticing higher demand in sales and manufacturing roles.”

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