Latest news: Public sector job losses

The latest review of labour market statistics indicates that cuts to the public sector are beginning to hit hard. 26/09/2011

The research group, Centres for Cities, suggests that almost 75% of the cuts are hitting the North and the Midlands, where 175,000 public sector jobs have already been lost. A further 40,000 cuts have been made across the East of England.

The research shows that public sector job losses are not evenly split across the country, as London, the South East and the devolved administrations of Scotland and Wales have seen public sector jobs rise.

‘In those places that are highly reliant on the public sector, the impact of the cuts will be felt hardest. This is now playing out in the North and East of the country, where the economies of their cities are more public sector dependent,’ said chief executive of Centre for Cities, Joanna Averley.

Separate data from the Office for National Statistics (ONS) shows that the private sector has created 41,000 jobs this quarter – an economy-wide reduction of 70,000 jobs in three months. Centres for Cities, argues that this currently shows that the private sector is struggling to create jobs at the rate required to offset the loss of private sector jobs during the recession and to cover shrinkage in the public sector.

‘Cities that are more affected should focus on re-training and re-employment initiatives which support people back to work in the private sector.  In the long term, these cities will need a realistic action plan which builds the conditions needed for private sector investment,’ added Joanna.