Redundancy intentions 'highest in 4 years'

News Article - 11 February 2008
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Almost two in five companies - 38 per cent - intend to make redundancies this quarter, compared to 17 per cent last autumn, research has shown.

The Labour Market Outlook survey from KPMG and the Chartered Institute of Personnel and Development (CIPD) found that among public service sector business plans this figure rose to 48 per cent as firms attempt to control costs.

Andrew Smith, chief economist at KPMG, stated that the survey has revealed a "general uncertainty" about the future of the economy.

"The number of companies expecting to make redundancies has jumped - but the majority still expect to employ the same or a higher number of staff in 12 months time," he added.

According to CIPD chief economist John Philpott, the UK is entering a period of careful planning in relation to employment and job insecurity may arise as a result.

CIPD research recently showed that 46 per cent of organisations are choosing not to award employees across the board pay rises and instead utilise rewards related to business performance.

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