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Unemployment 'to increase sharply'

Tuesday February 15th 2011

An increasing number of people are likely to find themselves out of work over the next few months as a majority of public sector employers cut jobs in an attempt to meet efficiency savings imposed on them by the Government, a report has predicted.

Although staffing levels held fairly steady throughout 2010, the number of redundancies is expected to increase "sharply" this year, the Chartered Institute of Personnel and Development (CIPD) said.

Two-thirds of public sector organisations are set to streamline their staffing levels in the first quarter of the year while three out of four local authorities will scale back their workforce during the same period, the report said.

But the Government will point to an increase in jobs within the private sector as evidence that its surging cuts will be of long-term benefit. Private companies in the manufacturing and services sectors are providing most of the new jobs, the study claimed.

Gerwyn Davies, public policy adviser at the CIPD, said: "The first three months of 2011 was always going to be a quarter of reckoning for the jobs market, and it seems that last year's modest recovery will be reversed by a modest relapse this year."

Copyright © Press Association 2011

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