Employment market showing signs of recovery
The UK employment market is showing signs of recovery according to a report from The Recruitment and Employment Confederation and KPMG. The hourly rate of pay for temporary and contract staff has increased at its fastest rate for two years amid signs that the private sector at least is starting to move in the right direction. While this is obviously a positive sign for the UK as a whole there are concerns about the public sector where significant job cuts are expected in the short to medium term.
In many ways we are operating in a two tier employment market with the private sector coming out of recession and the public sector only now entering recession. Despite what the political parties would have you believe, there will be massive cuts in public sector spending in the short to medium term with some forecasting up to 700,000 job losses in the UK public sector. This will cause a significant drag on the UK economy and increase pressure on the benefits system.
While some experts are forecasting UK unemployment to move over 3 million in the medium term nobody is quite sure about the pace of recovery in the private sector and whether this doomsday scenario will materialise.
Share this..
Related stories
The collapse of the Dubai economy continues
While it may only have started a couple of days ago, the situation in Dubai is worse than ever with the ruling family now looking at selling a number of prized assets to try and pay down the rumoured $80 billion in debt which is dragging the economy down. What started as a request for a suspension of debt repayments has quickly developed into the possible default by a government in what is one of...
Read MoreDinkys faring better than full-blown families
Although the average 'double-income-no-kids' families (Dinkys) have about £82,000 of debt, a recent survey has shown that when two children are added to the equation, mortgage, loan and credit card debt tends to exceed £100,000 - nearly a fifth of an increase.Scottish Widows' research shows that of the 7.1 million households which have dependent children, 3.5 million require two salaries just to...
Read MoreIs optimism returning to the UK financial sector?
A survey released today from the CBI and PricewaterhouseCoopers has highlighted the potential for a gradual path to recovery in the UK financial sector. However, this renewed optimism is set against an expectation that a further 13,000 jobs will be lost in the short to medium term in the UK financial sector. While the figure of 13,000 is disappointing, it is well down on the earlier forecast for t...
Read MoreGeorge Osborne will appoint next OBR leader
Chancellor of the Exchequer George Osborne has today defended his decision to retain the right to appoint the head of the Office for Budget Responsibility (OBR) with controversy still growing as to the real "independence" of the office. There have been accusations of figures being massaged to cast the UK government in a better light and while these accusations have been denied by George Osborne an...
Read MoreUnemployment hits 16 year high
Just when Gordon Brown felt the tide was turning with regards to unemployment in the UK it has been revealed that unemployment increased by 43,000 in the three months to February, taking the total amount 2.5 million. This is a bitter blow for the government ahead of the election and opposition political parties are sure to make hay while the sun shines and attack Gordon Brown's handling of the UK...
Read More