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Business performanceLatest NewsEconomics, government & businessJob creation and lossesLabour market

CIPD predicts summer of job cuts

by Louisa Peacock 2 Jul 2009
by Louisa Peacock 2 Jul 2009

The number of HR professionals seeking advice about redundancy barely changed compared with the first and second quarters of 2009, suggesting that yet more employers are preparing to cut jobs this summer.

The data, based on an analysis of calls to the Chartered Institute of Personnel and Development’s legal helpline, found that the proportion of enquiries related to redundancy fell just a percentage point from 19% (quarter one) to 18% (quarter two), totalling more than 5,000 calls.

In the second quarter of 2008, 12% of calls were related to redundancy.

The news comes as a survey by recruitment firm High Fliers found graduate job vacancies were down 13.5% on 2008, indicating the jobs market would remain tough this year.

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John Philpott, chief economist at the CIPD, said: “There is little or no sign of any redundancy let-up, even though the UK economy has appeared more stable in recent months. With many HR professionals already familiar with the legal process, the continued high demand for redundancy advice might understate the number of redundancies about to be made this summer.

“The uncertain economic outlook, coupled with concerns about credit supply, is forcing the nervous hand of employers to make job cuts, which are further job cuts in many cases.”

Louisa Peacock

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Personnel Today
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