As the UK continues to endure a harsh economic situation employers have indicated that it may be necessary to cut jobs. A study from the C.I.P.D (Chartered Institute of Personnel and Development) has indicated that there are many employers which have retained staff even though they may be considered a negative asset of the business.

Recently the news has been overwhelmed as reports of job-cuts throughout the UK hit home, it’s already a reality for many that now find their income stream greatly reduced or simply removed altogether.

Recent high profile examples include;

Employers have, through the study, shown that they are “holding on to” the skills base of their staff. The effect of this is will lead to an inevitable reluctance, in the future, to acquire new entry level staff which would require training. The secondary effect is such that should a company be forced to make cuts, these excess staff may well find themselves at the front of the line for review.

Nearly two thirds of the companies involved (public sector firms) suggested that such measures are highly likely in the near future.

Job Cuts, Unemployment, Employment, Recession,

Gerwyn Davies, Labour Market Adviser at the CIPD, stated:

“This is a make or break moment for employers – unless growth picks up many will find that they cannot hold on to some workers any longer.


“The tenacity with which employers are hanging on to skilled labour is a reflection of the high value they place on it and the damage they fear will be done to their businesses if they are forced to start making more redundancies.

The retention of the already trained and skilled staff does show that companies are at least hopeful that a turnaround is possible, and these excess staff would in such case be able to more quickly produce positive turnover should there be a growth in demand. The thinking being that while the companies may now be struggling, the extra staff would mean better mid to long term possibilities.

Another adverse effect of this slow or stagnant financial climate is that there are indications that there may be a slight decrease in the average pay awards in the public sector.

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