One-third of employers planning redundancies

The economy maybe in recovery, but businesses are still having to make some tough decisions in order to keep costs down.

According to a survey by the Chartered Institute for Personnel and Development (CIPD), 32 per cent of firms expect to cut jobs within the next three months.

This compares to just 29 per cent who were planning to make redundancies in the spring quarter and 26 per cent who intended to let staff go during the winter.

Workers in the public sector will be most affected, with 36 per cent of employers anticipating a round of redundancies in the months ahead.

The CIPD warned that the actual impact of job cuts could be even more severe, since organisations are also planning to terminate more contracts.

Indeed, those making redundancies intend to let 5.5 per cent of their workforce go, compared to 3.6 per cent in the spring.

Meanwhile, government figures have shown that employment levels increased in the second quarter of the year, while unemployment dropped.

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Published on: August 18, 2010

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