Public sector employment figures confirm tougher jobs outlook

Todayís figures showing a rise of 72,000 in public sector employment in the year to the third quarter of 2005 ñ exactly in line with CIPD estimates published yesterday based on the Instituteís quarterly Labour Market Outlook ñ underline that tougher times lie ahead for public sector workers and managers, says CIPDís Chief Economist Dr John Philpott.

Philpott continues:

ìAs the CIPD forecast earlier this week, growth in public sector employment started to slow in the second half of 2005 and will continue to do so in 2006 as the Governmentís efficiency drive begins to bite. In the context of tighter control of public sector pay, the challenge facing public sector managers to meet efficiency targets and maintain employee morale will be greater than at any time since the late 1990s. Managers helping to deliver public services should therefore be seen as key front line staff and not the ëunproductive bureaucratsí of popular portrayal.

ìThe slowdown in public sector employment ñ which has helped boost total job growth in the UK in recent years ñ also adds weight to the CIPDís forecast for overall job creation in 2006. With fewer new public sector jobs and private sector employers also eager to raise productivity and reduce unit wage costs it is likely that only 150,000 net new jobs will be created in the economy this year ñ less than half the increase enjoyed in 2005 ñ even assuming that the economy recovers in line with Treasury forecasts.î