The number of organisations expecting to make people redundant in the public sector was greater than those expecting to hire people in the quarter ending March 2006, according to a new workforce report. Meanwhile, nearly half of the voluntary sector were expecting to recruit in the same period while just under a third were expecting to make people redundant.
The figures for recruitment in 2006 are below those for the whole of 2004 and 2005, while the figure for redundancies was greater.
Public sector organisations were the most pessimistic about staffing levels in the next year with a negative employment balance of 14 per cent (more believed staffing levels would be lower).
In the voluntary sector this was reversed with a positive employment balance of 15 per cent.
Meanwhile, 35 per cent of employers believed that recruitment would have the biggest impact on costs after pay bargaining followed by 27 per cent that cited pensions.
Several factors are causing he slowdown the public sector, the effect of tightening budgets on health and social services as shown by the recent spate of redundancies in the NHS and the effects of the Gershon efficiency review in the civil service and local government.
• Labour Market Outlook from the Chartered Institute of Personnel and Development from: http://www.cipd.co.uk