Public spending cuts appear to be unavoidable after the government borrowed funds totaling more than £4 billion in January.
The figures from the Office for National Statistics showed that in a period when the UK usually has a surplus, it had to look for financial aid elsewhere.
Commentators like Andrew Goodwin, senior economic adviser to the Ernst & Young ITEM Club, have called the figures "pretty ghastly" and said if things continue as they are the UK might not meet its full-year forecasts.
The situation might call for cuts in public sector jobs in the short term, in order to secure more roles in the future, but it is a hard call for the government, which will face a backlash from civil servants.
According to the latest Chartered Institute of Personnel and Development (CIPD)/KPMG quarterly Labour Market Outlook survey, public sector employers expect to cut back staffing levels during the first quarter of this year.
This could cause problems for graduates as research group Center for Cities found that around half of university leavers look to the public service for their first role.
The research predicted that almost 300,000 public service jobs will go by 2014 and there will be more graduates underemployed or unemployed halfway through the next decade.
If the cuts do go ahead the UK job market will be hit hard, but all the major parties have hinted that if they win the election they will have to reduce the number of public sector roles.
Of course the cut in public sector jobs would see graduates and other job seekers looking for different roles. This could be to the benefit of the private sector which would inherit some of the brightest university leavers in the country.
The figures from the Office for National Statistics showed that in a period when the UK usually has a surplus, it had to look for financial aid elsewhere.
Commentators like Andrew Goodwin, senior economic adviser to the Ernst & Young ITEM Club, have called the figures "pretty ghastly" and said if things continue as they are the UK might not meet its full-year forecasts.
The situation might call for cuts in public sector jobs in the short term, in order to secure more roles in the future, but it is a hard call for the government, which will face a backlash from civil servants.
According to the latest Chartered Institute of Personnel and Development (CIPD)/KPMG quarterly Labour Market Outlook survey, public sector employers expect to cut back staffing levels during the first quarter of this year.
This could cause problems for graduates as research group Center for Cities found that around half of university leavers look to the public service for their first role.
The research predicted that almost 300,000 public service jobs will go by 2014 and there will be more graduates underemployed or unemployed halfway through the next decade.
If the cuts do go ahead the UK job market will be hit hard, but all the major parties have hinted that if they win the election they will have to reduce the number of public sector roles.
Of course the cut in public sector jobs would see graduates and other job seekers looking for different roles. This could be to the benefit of the private sector which would inherit some of the brightest university leavers in the country.
No comments:
Post a Comment