The jobs market: Timed out?

First, the all-important numbers. Figures released last week by the Office for Budget Responsibility (OBR) predict a reduction in public sector headcount of 410,000 by 2015/16 (revised down from 610,000) as a result of the chancellor’s October spending review. The OBR offered no estimate for the number of private-sector jobs that will disappear as a result of reduced government spending. The CIPD’s chief economist, John Philpott, did. He fears the spending cuts, combined with the hike in VAT, will see 875,000 private sector go. His public sector forecast was also less optimistic, predicting 725,000 job losses. If he’s correct, 1.6 million jobs will go from the economy in the next five years.