Redundancies set to double: Sector hopping will so

Posted on Wednesday, March 3rd, 2010 by

There’s some good news and some bad news. The good news is that hiring activity in the private sector is rising for the first time since the recession according to recent figures (+5%). The bad news is, in a nutshell, the private sector, with redundancies ‘set to double’ in the first quarter as nearly a third of public sector employers plan to cut jobs. Anticipated job ‘growth’ is -31% compared to -13% last quarter, with public administration and defence being particuarly hard hit. If you think that’s depressing, here’s a quote from Alan Downey, head of public sector at KPMG that will have you reaching for your passport. “These figures clearly show that the starting gun for a public sector recession has been fired. It is only a matter of time before we are faced with the deepest and most prolonged cuts in public expenditure that anyone can remember”. A side-effect is likely to be a rise in the number of public sector employees looking for private sector employment according to Suzannah Chapple, Chapple Director. She says: “During the recession, public sector jobs were seen as a much safer and secure option than those in the private sector and candidate enquiries reflected that. These figures show that the pendulum may well swing the other way, with public sector candidates with a transferable skill set seeking employment in an increasingly buoyant private sector. For talented public sector candidates, the anticipated recession may be a launch pad for another career path.”