Confusion over public sector spending
Despite the fact that Gordon Brown and his fellow MPs in the government appeared set to reduce public sector spending and promised to reduce recruitment drives in the short to medium term, Hayes, the U.K.'s largest recruitment company, believes the public sector will help keep the company on track in the short to medium term. These comments came as the company announced a 43% fall in profits to £151 million in the 12 months ended June.
There will be concern in opposition party ranks that the government, while attempting to pay lip-service to a reduction in the public sector workforce, would appear to have given recruitment agencies a clear indication of their requirements for the future. If this is the case, how will the UK government be able to afford not only the additional salaries involved but also the various pension liabilities and other benefits?
So far there has been no comment from the UK government with regards to the suggestion that recruitment in the public sector will continue unabated, but we await a formal reply in due course. Only yesterday a report on the NHS suggested that over 100,000 jobs could be lost in the short to medium term as the government battles to slash £25 billion from public sector spending plans.
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