Public sector cuts may hamper jobs recovery

CIPD says one in three employers will lay off staff.

Any recovery in the job market will be tempered by public sector austerity measures, says a report from the Chartered Institute for Personnel and Development.

While the private sector is set to increase hiring, this will be offset by significant losses of jobs in the public sector, where redundancies will affect 8 per cent of workers on average.

One of the report's authors, Gerwyn Davies, said that in the medium term he expects the jobless rate to go up:

"The CIPD believes that a rise in unemployment in the next two years remains a distinct possibility as the private sector recovery is offset by the 600,000 public sector job losses the government expects over the next five years."

"The big question is whether the private sector can create new jobs in sufficient numbers and quickly enough."