Response to Emergency Budget
Randstad response to Emergency Budget?
Following this afternoons emergency budget announcement, please find below quotes available for use, from Brian Wilkinson, Executive Board Director, and Randstad. We could be close to the peak of unemployment in the UK and we expect that many of the people that lose their jobs from the public sector will be able to find employment in the private sector, so long as the private sector remains confident. Budget measures such as the cut in corporation tax and the increase in the National Insurance payment threshold will be welcomed by employers.
The UK labour market is experiencing a growth in part-time jobs, driven by the private sector, and a decline in claimants of Job Seekers Allowance. These are classic signs of early stage recovery. Part of the migration of workers from the public to the private sector could be through an increase in TUPE transfers, which will enable the continued delivery of vital public services. From a cost basis, the public sector workforce reduction will need to be managed very carefully. If it isnt, the tax payer could face the double whammy of paying public sector redundancy costs and unemployment benefits for those that cant find jobs. The labour market rebound in the private sector could be faster than the recovery in the early 1990s. This is because the economy is more services based, has closer ties with the global economy and a more mature and sophisticated recruitment agency sector which can support swift, cross-industry and cross-sector movements in demand and supply.