Public Sector Job Numbers To Reach Record Low After Osborne's Cuts

Posted: 25/03/2012 06:14 Updated: 25/03/2012 07:33   PA

The public sector workforce is set to fall to an historic low, with around one in seven jobs expected to be axed as a result of the Government's spending cuts, according to a new report.

The Chartered Institute of Personnel and Development (CIPD) said the cutbacks will mean that the public sector will account for one in six jobs in the economy, down from a peak of one in five before the last election.

John Philpott, the CIPD's chief economic adviser said projections from the Office for Budget Responsibility (OBR) showed that the number of people employed in central and local government will have fallen by around 700,000 during the course of the current Parliament (2010-2015).

The number will fall by 880,000 by the time the Chancellor hopes to have closed the structural fiscal deficit in 2017, said Mr Philpott, adding: "This will easily wipe out the net rise in public sector employment under the Labour government between 1999 and 2009 and take the public sector workforce to a record low.

"Overall more than one in seven public sector jobs will be lost as a result of the squeeze on public spending.

"While the OBR expects growth in private sector jobs to more than make up for the public sector jobs cull, public sector downsizing on such a scale nonetheless represents a tectonic shift in the underlying structure of the labour market with broader implications for what people can expect to experience in terms of pay, conditions of work, management practice and workplace cultures."

The report follows an analysis of official figures by the GMB union which showed a 381,000 reduction in the number of public sector workers since the general election.

The GMB said private firms were not able to make up for the losses in public organisations, warning that the cuts were damaging the UK's chances of economic recovery.

The data showed that public sector employment fell from more than 6.3 million before the general election to less than six million at the end of last year.

GMB general secretary Paul Kenny said: "These figures go a long way to explain why unemployment has increased in the UK since the general election.

"The Government has been putting people out of work and the private sector cannot make up for the jobs carnage."

TUC general secretary Brendan Barber said: "Getting rid of one in seven public sector jobs will have a devastating impact on the public services we all rely on and deal a huge blow to local economies across the UK.

"The Government says that new private sector jobs will replace them but with joblessness and under-employment over six million and rising, it's hard to see where they will come from.

"A public sector jobs cull on this scale will depress local economies and cause even further job losses in the private sector.

"The Government must stop this cruel and self-defeating attack on public sector workers before it's too late."

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The public sector workforce is set to fall to an historic low, with around one in seven jobs expected to be axed as a result of the Government's spending cuts, according to a new report. The Charte...
The public sector workforce is set to fall to an historic low, with around one in seven jobs expected to be axed as a result of the Government's spending cuts, according to a new report. The Charte...
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05:20 PM on 04/04/2012
what saddens me is the being an ex public service employee, is that Cameron and Osborne expected private industry to work make up the jobs lost in the public sector. Good idea you might think but what was done to build the trust in the government create the structures in order to build the economy and thus the incease in private sector jobs. If you make people poorer, except Osborne's pals in the 1%, then where, how and when do these idiots think the it will all be alright on the day? I can understand efficiency but this is not efficiency, it is carnage of peoples' lives and welfare. The tories should be held to account here and now for their deliberate acts of malevolence towards the voters, of all ages and those yet to get the vote. We cannot allow computers and machines to rule our lives.
07:37 PM on 04/14/2012
i agree with all three comments here, this horrid lot have no idea, my husband is blind a dialysis patient and guess what they replace the skill of the nurses with so called health care assistants that are paid no more than minimum wage, in the private sector wages are lower
and it will cost more as people will have to rely on tax credits to top up their earnings like i do
i work for a good employer, but does not pay a living wage
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01:38 PM on 03/25/2012
As we are seemingly supporting an NHS having to spend millions in "Agency" Doctors and nurses to cover the tens of thousands of both currently needed by the NHS; then does this mean an end to buying in these expensive "contracted" people first?

One would assume that if you dont have enough staff NOW and are having to pay 3 times more from an agency to cover the NHS that the "axe" will fall on all Agency workers and you could then ustilise the savings to get full time staff for a third of the cost into the NHS?
05:56 PM on 03/25/2012
No chance! The agencies Are PRIVATE companies and will be allowed to continue to rip off the NHS.