600,000 public sector jobs to be made redundant according to current Treasury figures, but where are all those employees going to go?
According to recruitment company, Hays, Chief Executive, Alistair Cox, they are not seeing hire rates increase sufficiently to absorb those 600,000 public sector employees. Of equal concern, Hayes is not witnessing an expansion of new jobs either.
You may recall my blog post of several months ago, The Beveridge Curve, where I asked questions about workforce skills competency to enable successful transferability from one sector to another – in particular the passage from public to private sector.
The Hays’ view is also supported by online recruiter Totaljobs.com who states there is no current jobs growth in any or all sectors sufficient to absorb employee migration to the scale of 600,000 and Ken Brotherstone, Chief Executive of financial consultancy, Kinsey Allen, agrees.
Alistair Cox comments that the UK jobs market at present is reflective of ‘churn’, i.e. the normal replacement of employees from natural workforce turnover. I continue to remain concerned about economic growth in the UK – economic recovery comes from growth as well as cuts. We’ve definitely begun to embrace the latter but stimulus in local investment cycles is absolutely critical to developing the ‘cream’ of new jobs.
Dole queues of 600,000 people is a chilling prospect, and Guardian journalist, David Blanchflower, in an article on 20 June 2010 predicted a deteriorating position due to rising unemployment for those aged under 25. I just hope we see rapid jobs growth so that the cream of our youth finds work and a meaningful place in our future society.