As Economic recovery continues to pick up speed, the private sector sees an increase of 300,000 jobs in the last 6 months. The private sector workforce grew to 23.11million, an increase of 308,000, according to the Office for National Statistics. What is the reason for this rise and will hiring rates continue to improve with the economy?
The Chief Economic Adviser at the Chartered Institute of Personnel and Development (CIPD) Dr John Philpott said: "The private sector looks to have enjoyed a mini jobs boom in the second quarter of the year as the economic recovery gathered pace, with Full-time employment in particular showing a most welcome rise."
A surge of 166,000 people taking part-time jobs also drove the increase: more figures released from the Office for National statistics suggested that the number of students taking part-time jobs has significantly contributed to the rise and that a total of 47,000 full-time students took jobs while students classed as economically inactive fell by 62,000.
However, the good news may be short-lived as another rise in unemployment is predicted for early 2011. Dr John Phillcott suggests that the rise in jobs is the result of the hiring ban during the recession being lifted:
"This mini jobs boom is unlikely to last. This is partly because the rise in employment was probably boosted by a one-off unwinding of the recruitment freezes introduced in much of the private sector during the recession. And with many businesses still operating below capacity having hoarded labour in the downturn it may require a much stronger and sustained economic recovery to maintain hiring rates."
With the spending cuts in the public sector also set to stifle short-term recovery of the economy as they kick in, we will have to be prepared for a new rise in unemployment, especially as the average pay may continue to fall putting more pressure on earnings. It is too early to predict, especially with `double-dip????? recession????? threatening the growth of employment even further.
