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Latest News - American Jobs Recovery Set To Outpace Uk Recovery

Tuesday Mar 9

Survey reveals UK may lag behind American for job creation

American jobs recovery set to outpace UK recovery

Job opportunities in the US are set to rise, but the UK’s labour market recovery may be comparatively weaker because of cuts in the public sector, research has revealed.

The CIPD compared results from its own quarterly Labour Market Outlook (LMO) survey with a similar US survey by the Society of Human Resource Management (SHRM).

The US survey produced a positive balance of +11 per cent, which is found by measuring the difference between the percentage of employers expecting to employ more staff in the first quarter of 2010 and the percentage expecting to employ fewer. This is up from +6 per cent for the previous quarter, and is the most positive figure since the US version of the survey began a year ago.

In contrast, the UK survey found a negative balance of -5 per cent, which represents a further fall on the -3 per cent figure recorded in the previous quarter’s report.

A fall in employment intentions in the public sector accounts for the difference between the UK and the US, with net employment intentions falling to -33 per cent in the UK public sector. This drop will have a disproportionate effect on female employment prospects, as they make up a far higher proportion of the public-sector workforce than they do that of the private sector.

Gerwyn Davies, CIPD public policy adviser, said: “With a greater proportion of UK workers employed in the public sector, the jobs market in both countries looks set to drift in polar opposite directions as hundreds of thousands of public-sector job cuts are made in the next few years.

“This will have a greater impact on women than men, who make up more than a third of the total public-sector workforce compared to just one-sixth of the private sector. As a result, the next few years may see the worst employment prospects for women in a generation.”

SHRM’s LMO survey, based on the same questions as the UK report, founds that over one in 10 (12 per cent) US employers plan to cut jobs in the first quarter of 2010. This marks a dramatic reversal from the first quarter of 2009, when almost three-quarters (73 per cent) of employers planned to make job cuts. The improvement is much less marked in the UK, where the number of organisations planning to make redundancies has fallen from 40 per cent in the first quarter of 2009 to 28 per cent in the same period this year.

As the latest US job figures are set to be announced today, previous comparable data on the US unemployment rate showed it was 10 per cent, while the UK unemployment rate was 7.8 per cent in the three months to December 2010.

Source: www.peoplemanagement.co.uk - 5 March 2010

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