Page last updated at 09:35 GMT, Monday, 10 August 2009 10:35 UK

Rate of job cutting 'is slowing'

People queue outside job centre
Official unemployment figures are due on Wednesday

The pace of deterioration in the UK job market is slowing but the number of public sector employers expecting to cut staff has risen, a survey suggests.

Ten per cent more employers planned to cut staff in the three months from June than recruit, the Chartered Institute of Personnel and Development found.

But that was better than the previous three months, when the balance was 19%.

The report still concludes unemployment will hit 3.2 million in 2010. Official jobless data is due out on Wednesday.

The figure for the private sector was particularly strong, with the balance of firms cutting over those recruiting shrinking from 30% to 2%.

But the public sector has gone in the opposite direction, with the figure growing from 3% to 28%, with cuts in some areas of public spending anticipated.

John Philpott, chief economist at the CIPD, said local authorities were coming under financial pressure.


"Their budgets are being squeezed and they can't get extra income from high council tax bills so they've got to make economies," he told the BBC.

He added that not all job cuts would be related to the recession, with local authority restructuring also likely to take its toll.

The CIPD research was based on responses from 923 of its members.

And it highlighted concerns there may be fewer opportunities for new school-leavers.

"When it comes to the immediate jobs outlook, the best that can be said is that things are getting worse more slowly," Mr Philpott said.

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