Could the public sector be hit by job losses?
There is growing concern within public sector unions that a slower than expected recovery in the UK economy could see significant job losses in the so far immune public sector. It is safe to say that despite hundreds of thousands of jobs being lost in the private sector there has until now been an ongoing recruitment program in the public sector, continuing a pattern which began under Gordon Brown's tenure at the Treasury.
Any job losses in the public sector will obviously be picked up on by opposing political parties who have for some time been suggesting that the government will need to cut back on public services and public expenditure. Until recently, the UK government had been adamant that investment in public services and the public sector as a whole would continue despite the recession but now the penny seems to have dropped and job losses appear to be on the way.
It will be interesting to see how the potential job losses in the public sector are explained because ultimately Gordon Brown has to a certain extent placed his faith in the public sector pulling the UK economy out of recession. If the final barrier between a further downward movement in the UK economy and recovery is broken then where do we go from here?
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