LMO Expects Net Employment Balance of Public Sector to Continue the Negative Level September 19, 2011
The Labour Market Outlook (LMO), part of the CIPD Outlook series gives an indication into the forthcoming quarterly employment conditions like hiring and layoffs. The Chartered Institute of Personnel and Development (CIPD) in partnership with KPMG had conducted this summer 2011 survey among more than a thousand organizations.
The research conducted shows that the employment market, which had progressed after recession, will move at a considerable slow pace in the forthcoming months, due to ambiguity about future growth scenarios. The LMO claims that the net employment index that measures the differed balance between the amount of companies planning to increase their overall recruitment levels to that who plan to decrease it, will fall to -1 from the +3 observed in the last three months.
Public sector companies seem to be quite cynical about employment prospects suggests the survey results. Their bad show of net employment balance seems to continue from the -52 observed in the last three months to -51. Statistics for private sector companies seem to show a growth of +23 for the third quarterly period but this seems to have decreased from the +32 recorded in the last quarter. This decline is majorly due to the fall observed in the manufacturing sector, claims the survey results. Manufacturing sector figures have dipped from +32 observed in the last quarter to +11.
The LMO also suggests that the weakening market is affecting the long-term outlook. It has measured employment targets until June next year. The results show that the employment index has already dipped to -6 from the +2 recorded in the last three months, which is quite upsetting.
Region-wise too, the divide seems to be clear and extensive. Companies located in the South of England show signs of improved employment intentions with their quarterly net employment balance being +10 for all work areas. North of England on the other hand is lagging behind with a balance of -6.
According to Gerwyn Davies, Public Policy Adviser at CIPD, staffing and pay prospects will be badly hit due to growing insecurity about economic growth in the country as well as progress in other developed international markets. UK government will be quite upset as its efforts to stabilize the economy by having a balance between exports and financial venture will go in for a toss if the current scenario of the manufacturing sector and other sectors weakening turns true.