Public sector cuts higher than originally predicted

More jobs are being cut in the public sector than originally anticipated, with more research showing that the total could be up to 50% higher than original forecasts.

The BBC reports that the number of jobs lost since April is five times more than the Office for Budget Responsibility projections for the whole year.

The Chartered Institute of Personal and Development is calling on the government to halt the cuts, and questioned whether the private sector will be able to compensate for the vast number of public sector job losses.

The Treasury justified the cuts on the basis that they were part of the plan for sustainable growth, and were helping to deliver low interest rates for families.

The CIPD and the Treasury have conflicting beliefs over private sector job creation. The CIPD noted that “public sector job losses in the second quarter of 2011 far exceeded the net private sector job creation”, and accused the  plan of sapping the strength” of parts of the economy creating jobs.

However, independent government appointed body OBR, has forecast than there will be 900,000 more jobs created in the private sector than lost in the public sector by 2015.

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