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Expert rejects job loss prediction

Friday October 22nd 2010

A respected economist has warned that the number of public sector jobs axed as a result of the comprehensive spending review (CSR) will surpass the Government's 490,000 estimate and be nearer to 750,000.

John Philpott, chief economic adviser at the Chartered Institute of Personnel and Development (CIPD), warned that George Osborne's prediction was inaccurate because the CSR had "conveniently" failed to mention that the Office for Budget Responsibility (OBR) had forecast a loss of 660,000 public sector jobs by 2015-16.

He said: "Unless the Chancellor decides to reverse spending cuts pencilled in for 2015/16 he should admit this will be the outcome, at least until the OBR publishes its next forecast on November 29.

"Moreover, the CSR does not acknowledge the likelihood that very large percentage cuts in the cost of administration across Whitehall, local authorities and even ostensibly ring-fenced areas of spending such as the NHS, will have a disproportionately negative impact on some of the most labour intensive parts of the public sector.

"As a result, the CIPD estimates that the public sector jobs impact of the CSR to 2014/15 will be above 500,000, with total job losses rising close to three-quarters of a million by 2015/16 if the coalition sticks to its existing longer term spending plans."

Copyright © Press Association 2010

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