Aug
20
A Sharp Rise in Expected Redundancies will Hit The UK Jobs Market Hard, a Survey has Revealed.
Filed Under Marketing Strategy |
In February, it was revealed that the winter CIPD/KPMG Labour Market Outlook survey, showed that almost two in five (38%) companies intend to make some employees redundant that quarter - a sharp increase on the autumn 2007 Labour Market Outlook survey figure of 17%. This was the highest quarterly figure for redundancy intentions since the survey began in 2004.
The average quarterly figure for redundancy intentions is 21%. 25% of employers expected to make at least 10 staff redundant during the period and 37% expected to make fewer than 10 people redundant. Redundancy intentions are strongest in the public services where almost half (48%) of employers surveyed expected to make at least some staff redundant this quarter. Andrew Smith, chief economist at consultancy KPMG, said: “The survey reflects the general uncertainty about the economic outlook. The number of companies expecting to make redundancies has jumped - but the majority still expect to employ the same or a higher number of staff in 12 months time.” CIPD chief economist John Philpott said: “[The survey] does suggest that the UK is entering a period of slower employment growth and somewhat greater job insecurity than in recent years.” Source: Personnel Today 11 February 2008.
State benefits and employer redundancy packages will help but neither is likely to provide sufficient for any extended period of time. Income Protection or Accident Sickness and Unemployment Insurance can help protect against the financial pressures that will inevitably come about in the event of unemployment for anyone unlucky enough to be affected but you need to be aware that there are “exclusion periods” applicable whereby cover will not available until the policy has been in place for a specified period of time. These exclusion periods exist to prevent people who are already aware of immediate redundancy applying for unemployment insurance. Professional advise should always be taken to ensure the most suitable cover at the best price.