Boost for public sector as CIPD declares it ‘recession-free zone’

Figures published last week by the Office for National Statistics (ONS) highlighted the degree to which public sector pay and employment has remained immune to the impact of the recession.

Dr John Philpott, Chief Economist at the Chartered Institute of Personnel and Development (CIPD) said that while the Government is right not to cut public sector jobs at this point in the economic cycle ministers should take a much tighter grip on public sector pay.
 
He claimed: “Whereas previous UK recessions have often been characterised by a regional ‘north-south divide’, the most noticeable feature of the current recession is the ‘public sector-private sector divide.’
 
“The public sector is at present an entirely ‘recession free zone’. While private sector employers are shedding hundreds of thousands of jobs and freezing or cutting the pay of millions of employees, their public sector counterparts are mostly maintaining staffing levels and presiding over relatively generous pay increases.”

However, this is not encouragement for the public sector to make job cuts, as Dr Philpott continues: “As unemployment passes the 2 million mark, on its way to at least 3 million, there is a strong case for preserving or increasing public sector employment. The public sector needs additional resources at this time to cope with the various social consequences of the recession.”
 
He also warned that all workers, public and private sector alike must ‘share the burden of pain’ to get over the recession, including clamping down on big bonuses and inflated pay.

 
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