Employee motivation to suffer as CIPD predicts job losses in 2011

Date: 04/01/2011

Employee motivation will suffer this year as experts predict the number of people expected in work in 2011 to be less than last year, falling by 200,000.

The Chartered Institute of Personnel and Development (CIPD) has forecast that public sector employment will fall by 120,000, while workers in the private sector will also see cuts of around 80,000 jobs.

This means that unemployment will rise to nine per cent.

However, earnings will increase by two per cent, although this is below inflation levels.

John Philpott, chief economic adviser at the CIPD, said: "2011 will be a 'fingers crossed' year for the economy and jobs.

"This doesn't mean that we are facing a return to the dire recession days of late 2008 and 2009, but nonetheless 2011 will probably feel like another year in the economic doldrums, rather than the start of a return to prosperity."

Employee morale remained low over Christmas as public sector workers prepared themselves for job cuts.

Between August and October 2010, 33,000 public sector jobs were axed, according to the Office for National Statistics.

Posted by Elizabeth Mewes

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