UK think tank warns of public service cuts
While there is much pressure on the UK government to cut back on investment in public services, with a £1 trillion national debt to contend with, a report by the Centre for Cities has today warned that a reduction in this particular area will impact upon graduates. It is believed that more than 50% of all graduates in the UK will move to the public sector for their first employment position although with public sector jobs likely to be cut in the short to medium term there will be few opportunities in this particular area.
The report suggests that around 290,000 jobs will be lost in the public sector by 2014 and the number of graduates either unemployed or "not making full use of their qualifications" will increase. This will place more pressure on UK employment market and will ultimately increase payments from the benefit system while the employment market continues to struggle.
While few people will shed any tears over job losses in the public sector, when you bear in mind these are but a fraction of job losses in the private sector, there is no doubt that pain will be felt in the short to medium term. However, when you consider the very attractive pension arrangements which many public sector workers have at the moment, there will no doubt be a stampede for early retirement if offered. The UK government has, in the opinion of many people, grown the public sector to a size which is incompatible with the current UK economy and which does need to be downsized in the short to medium term.
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