More than half of private firms would not hire public sector workers, according to survey of 500 firms by Barclays Corporate and the Financial Times.
More than half those surveyed stated that they intended to create jobs in 2011. However 52 per cent of the firms surveyed stated that they felt former public sector employees were not equipped for work in the private sector.
Businesses were said to be generally sceptical about the skills of former public service employees.
Unemployment is now at 7.9 per cent, and this is expected to rise as cuts begin to be implemented in the public sector.
The Office for Budget Responsibility has forecast that over the next four years, 330,000 public sector workers are expected to lose their jobs.
The government hopes that the private sector will create sufficient jobs to offset these losses.
75 per cent of the firms in the survey felt that the private sector would not be able to create enough posts.