CIPD Barometer Report 2010
News Posted: February 17th, 2010 under Online Recruitment News.
Tags: cipd
The CIPD published its latest employment barometer report. According to the report, unemployment will reach 2.8 million this summer, with the jobs market only showing signs of recovery in the second half of 2010.
In addition, a further 250,000 jobs will be lost in the next two quarters, but the coming year will still be better for employment than 2009. The forecast of 2.8 million jobless people is also a significant reduction from the CIPD’s previous prediction made in mid-2009 that unemployment would reach 3.2 million.
John Philpott, the CIPD’s chief economic adviser, also pointed out that the effects of the tax rises and public spending cuts announcements in last month’s pre-budget report may be felt negatively later in the year. He commented:
“The impact on jobs of planned cuts in public spending and tax increases – especially the 1 per cent hike in employers’ national insurance contributions (NICs) from April 2011 – is expected to be felt after the peak in unemployment. However, if employers were to anticipate the rise in NICs when making staffing decisions and/or there was a more immediate cut in public spending – which could be the case if the Conservatives gain power at the general election – unemployment might peak at a higher rate than we currently forecast.”
The report also predicted another year of depressed pay, with below inflation wage increases for most people in work.
To view the CIPD report, click here
