The promise of ìjam todayî in this pre-budget report will be welcomed by employers and employees alike, but the equally clear promise that weíll pay tomorrow is less welcome, and runs the risk of slowing jobs growth as the economy recovers, according to Dr John Philpott, Chief Economist at the Chartered Institute of Personnel and Development.
Dr Philpott says:
ìIn a welcome attempt to kick start the economy the Chancellor has hoofed a massive economic stimulus package up the pitch, and is hoping consumers and employers will pick it up and run with it. But there is a danger that this hit-it-and-hope approach wonít be enough to counter the job cuts that are already being planned. Even if the Chancellorís slightly optimistic growth forecasts are correct, his own expectations of a slowdown means job losses are certain to mount next year.
ìThere is certainly a good spread of jam today in this budget. But with the bill so clearly in the post, including a hike in national insurance contributions for employers and employees just as the economy is expected to be recovering, there is a real danger that this budget may do as much to slow medium-term jobs growth as it does to slow short-term job cuts.
ìIn the face of the avalanche of job cuts weíre predicting over the winter, the package of support for people facing redundancy is welcome. These initiatives demonstrate the Government recognises the severity of the looming jobs crisis. The extension of pre-redundancy support from the employees of large firms to those working in SMEs and the provision of more pre-redundancy training to help prepare people for the jobs market is particularly welcome. However, it is a shame that the National Employment Partnership appears to be focusing only on larger employers. With such a high proportion of people employed by smaller employers, it is essential for Government to find ways of engaging these employers in efforts to find jobs for the unemployed.î
Uncertain jobs impact of ìjam today - pay tomorrowî budget
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