Recovery in the jobs market will “stall” this year as demand for workers in the public sector falls, new research has warned.

According to the Chartered Institute of Personnel and Development (CIPD), a third of employers expect to cut jobs in the next three months.

The public sector employers in particular are planning cuts, with 36% of them looking to lose staff.

The size of the cuts being considered has also increased, the CIPD said.

Across all sectors employers are expecting to make an average of 5.5% of their workforces redundant, the survey of 600 companies suggests, up from the 3.6% average cut being considered three months ago.

Despite the threat of cuts, the CIPD’s net employment index, which measures the number of companies planning to hire against the number planning to lose staff, is still in positive territory at +two, down from +five three months ago. But the difference between the public and private sectors is stark. For the private sector alone, the index shows strong hiring intentions at +19 while in the public sector, the index gives a reading of -35.

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