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More workers 'set to lose their jobs'

The number of companies across the UK expected to make redundancies among their staff in the next few months has risen “sharply”. This suggests that the tougher economic climate has started to hit the jobs market, according to a new report.

The survey of more than 1,500 employers has shown that almost two out of five intend to lay off some workers, compared to fewer than one in five last autumn. The Chartered Institute of Personnel and Development says its study also reveals that one in four firms expecting to make redundancies believe that at least 10 people will lose their jobs.

Redundancy intentions have increased in all sections of industry since the end of last year and are highest in the East and West Midlands and South West England. The least-affected areas are set to be Scotland, Wales, Yorkshire and Northern Ireland.

John Philpott, the CIPD’s chief economist, said: “Employers’ initial reaction to talk of an economic slowdown was to hold fire and take stock of the emerging situation. But a substantial number now expect to trim their workforces. “With net recruitment activity still positive, signs of mounting employer pessimism shouldn’t be read as evidence of a jobs market approaching meltdown. But it does suggest that the UK is entering a period of slower employment growth and somewhat greater job insecurity than in recent years.”

Andrew Smith, Chief Economist at KPMG, said: “The survey reflects the general uncertainty about the economic outlook. The number of companies expecting to make redundancies has jumped - but the majority still expect to employ the same or a higher number of staff in 12 months time. And although more companies report recruitment difficulties, pay expectations are broadly the same as a year ago, suggesting that wage inflation concerns are overdone.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .