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Will small businesses using facilities management be boosted by public sector job cuts?

June 17th 16:56 Cost Management 

Small businesses who have been using facilities management as a way of reducing their operating costs could notice an increased demand for their services in the coming months.

The Chartered Institute of Personnel and Development (CIPD) has claimed that government spending cuts will lead to a job reduction of around 50,000 by the spring of 2011.

This could see a number of public sector employers outsource projects to small firms in a bid to have them completed on time.

Earlier this week, figures from the Office for National Statistics revealed that the number of jobs in the public sector declined by 7,000 between February and April of this year, while private sector employment increased by 12,000 over the same period.

Dr John Philpott, the CIPD's chief economic adviser, said: "Signs of recovery in the private sector jobs market … are welcome but beg the question whether the private sector will be able to fill the jobs gap once the process of public sector downsizing gets fully underway.

"Next week's emergency Budget will contain measures that will lead to a subsequent mass cull of public sector jobs. In the absence of a strong private sector jobs recovery, the cull will lift headline unemployment toward three million by 2012."ADNFCR-2717-ID-19844080-ADNFCR


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