The Austerity Budget and the Labour Market
Good People @ Aug 18, 2010
Concerns have arisen after more details were released of George Osborne's austerity budget. The chancellor's decision to decrease expenditure combined with inevitable public sector cuts has implications for firms who will put off recruitment - especially of full-time staff.
Current figures suggest an increase in the use of part-time workers as many companies will be reluctant to commit to full time contracts.
Also, the manufacturing sector has overtaken the service sector as the main area of growth. Private sector firms have become more averse to taking on staff and so the more labour intensive parts of the economy is have been hit hard.
There is still room for growth, however. Businesses have adapted their expectation of revenue and what will be possible in terms of investment and recruitment. Once the bottom line is under control, expect more firms to start hiring.
Current figures suggest an increase in the use of part-time workers as many companies will be reluctant to commit to full time contracts.
Also, the manufacturing sector has overtaken the service sector as the main area of growth. Private sector firms have become more averse to taking on staff and so the more labour intensive parts of the economy is have been hit hard.
There is still room for growth, however. Businesses have adapted their expectation of revenue and what will be possible in terms of investment and recruitment. Once the bottom line is under control, expect more firms to start hiring.
