Public Sector To Fall Out Of Bed

23rd June 09 - Public sector to fall out of bed

Some people feel that the public sector is feather-bedded. This is largely because they are supposed to swap high ongoing salaries for pension and job security. This of course is a travesty. On average, public sector workers get higher salaries than their beleaguered cousins out in the cold world of reality economics.

The Chartered Institute of Personnel and Development (CIPD) thinks there is some falling out of this cosy bed to be done. It predicts that 350,000 public-sector workers will lose their jobs over the next five years and a further 30,000 in local authorities over the next year. According to Dr Philpott (quite an apt name really) there will be a "coming era of public sector austerity" and featuring a union-led fight back again of the type now largely confined to the waste-paper basket in the private arena. He thinks that as the next (note next) Government tightens fiscal policy to bring down borrowing there will be major strikes and "regular bouts of unrest." Dr Philpott might observe that there is considerable unrest now from the rest of us about the public sector cliques.

One reason for the growing us and them feeling in the UK as a whole is contained within the data just put out by the ONS. It shows the number of people claiming unemployment benefits rose by about 60,000 in May 09 to reach 1.57 million. Within that big number are many personal tragedies. Not least the skilled workers leaving my long-standing furniture manufacturer on 10th July. Les has been running the shop-floor for 23 years and can make just about anything from a beautiful armchair to a comfy sofa to posh bar stools. But he and his men will soon be part of that 1.57 million who still wonder what the credit crunch crisis is all about. They do not have a clue about bundled up financial packages. Why should they?