The UK labour market faces a “slow, painful contraction” with firms delaying recruitment of more staff, a key report suggests.
The Chartered Institute of Personnel and Development (CIPD) predicted the jobs market would worsen in the medium term amid global economic “turmoil”.
Its quarterly survey of 1,000 employers found firms’ future hiring plans dwarfed by likely public sector losses.
It found employers adopting a “wait and see” policy towards the economy. This involved reduced recruitment as well as fewer redundancies.
The number of UK employers planning to outsource work overseas or hire migrant workers had also fallen substantially in the last three months, the survey found.
The CIPD said the employment situation could worsen if the eurozone crisis thrust the world back into recession.
CIPD public policy adviser Gerwyn Davies said: “The good news resulting from this lull in business activity is that fewer employers are looking to relocate abroad or make redundancies. The downside is that recruitment intentions are falling, which will make further rises in unemployment therefore seem inevitable given that public sector job losses are outpacing the predictions made by the Office for Budget Responsibility”.
Source: BBC News

Britain’s economic recovery hopes were dealt a blow today as official figures revealed an unexpected increase in the number of unemployed people.
David Cameron is to announce a review of every Government policy following last week’s riots, to ensure they are bold enough to fix a “broken society”.
UK unemployment fell 88,000 in the three months to April this year to 2.43 million, the biggest drop since the summer of 2000, the latest data from the Office for National Statistics (ONS) shows.
The Prince of Wales’s charity for young unemployed people has warned the UK is developing a “youth underclass”.
Recovery in the jobs market will “stall” this year as demand for workers in the public sector falls, new research has warned.
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