Thursday, 15 October 2009

Public sector jobs hit by spending cuts

(By Tola Sargeant, Thursday 15th October, 11:00am) It was no surprise this week to see evidence that anticipated cuts in public sector spending are already having an impact on recruitment in the UK public sector. Hiring activity in the public sector dropped markedly in September according to the Monster Employment Index, which measures online recruitment. The index shows a 10% reduction in hiring activity in ‘public sector, defence & community’ in September taking recruitment in the sector to a 14-month low. ‘Healthcare and social work’ (down 2% on a monthly basis) and ‘education, training and library’ (down 4%) also suffered although they still grew on an annual basis. The IT sector recorded a 3% monthly decline.

All in all, a reminder, if one was needed, that the UK public sector market is about to get much tougher for many suppliers. ITSAs (IT staff agencies) are likely to find permanent recruitment in the public sector particularly hard going. Project and consulting business will also be very difficult to come by in the public sector as spending cuts bite and discretionary spending dries up next year. In contrast, outsourcers, particularly business process outsourcers, can look forward to growth in the public sector as government searches for ways to improve efficiency and cut costs.

If that doesn’t appeal, you could always consider a move into ‘agriculture, forestry and fishery’ – according to Monster, that sector posted a 14% increase in job availability last month!

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