Todayís announcement of large scale job losses at BT has highlighted the particular vulnerability of agency temps and self-employed contract workers at times of economic recession. But John Philpott, Chief Economist at the Chartered Institute of Personnel and Development (CIPD) says this reality should not be used to question the merit of the UKís flexible labour market.
Dr Philpott commented as follows:
ìCIPD evidence indicates that at times of trouble, employers will first cut temporary and contract staff so as to avoid the greater cost and difficulty of making permanent staff redundant. This is why so far in the current economic downturn redundancies have only been the tip of the iceberg of total job losses.
ìWhile this makes agency temps and contract workers more vulnerable at such times, one should not forget that most people who work on this basis want to do so and are often best able to seek out opportunities when the going gets tough. And contract staff will also be first in line to be hired when the economy eventually recovers since employers will at first be reluctant to recruit people on permanent contracts.
ìAs with many other aspects of our economic life, the emerging recession may result in a questioning of the merits of a flexible jobs market and result in calls for tougher employment regulation. But the upsides outweigh the downsides, enabling the UK to adapt quickly to change. This increases the prospects of the swift return of relatively strong job creation once the economy returns to health.î
BT staff cuts highlight downside of flexible jobs market, but donít forget the upside
Todayís announcement of large scale job losses at BT has highlighted the particular vulnerability of agency temps and self-employed contract workers at times of economic recession
