A significant proportion of UK companies are planning redundancy drives throughout the remainder of the year
Over half of UK public sector organisations (56 percent) will cut staff numbers during the remainder of 2011.
In addition, 30 percent of private sector staff are planning redundancies in the same time period.
This is according to the Chartered Institute of Personnel and Development
and KPMG’s Labour Market Outlook
Recruitment rates have fallen sharply since the beginning of the year, and the number of employers planning redundancies has risen to the highest level since the survey began in 2004.
Saif Bonar, UK Manager of online outsourcing marketplace Freelancer.co.uk
“With unemployment rates already under the microscope, the news that more firms are likely to turn to firing as opposed to hiring this year will certainly be a blow to jobseekers and unwitting employees alike. What’s more, with those that do keep their jobs facing a further spending squeeze, pay rises are likely to be scaled back dramatically and some people may unsurprisingly feel stuck in a rut.
“Though on the surface, the outlook remains bleak, this should actually be seen as incentive for more people to look at alternative employment options – and the opportunity to take greater control of their own destiny. So many people have dreamed of starting their own business, but lacked the funding, confidence and appropriate catalyst to take the plunge. On the flip-side, too many talented people remain unemployed, though they possess skills that are surprisingly high in demand.
“In recent years, online outsourcing has emerged as a viable solution to the problem on both sides of the equation – offering small businesses a leg up with flexible yet affordable access to expertise, and enabling people to use their individual skills to boost income either alongside a nine to five, or as a standalone venture. This has been driven by increasingly savvy businesses moving from the traditional staffing model to one in which they balance core staff with freelance expertise for maximum efficiency and agility.
“As this trend looks set to continue, it presents a significant opportunity for those facing redundancy, frustrating pay freezes or prolonged job-hunts to use their skill set in a different way. These days, with the increasing digitisation of so many business processes – from bookkeeping to data-entry to graphic design – more global employers are seeking experienced freelancers to carry out project-based tasks, irrespective of physical location.”