By Claire West
Speaking after attending the government’s Employment Summit on Monday John Philpott, Chief Economist at the Chartered Institute of Personnel and Development (CIPD) commented as follows:
“It was encouraging to see business leaders, trade unionists and government ministers coming together to explore ways of addressing rising unemployment. A genuine sense of common purpose was evident at the today’s Summit.
“While it is undoubtedly true that we can’t avoid the effects of the global economic downturn, neither should we despair. We know what works when it comes to combating unemployment and the package of measures announced at the summit to help prevent the current rush of job losses from turning into long-term unemployment is a most welcome move in the right direction.
“As ever, the devil will be in the detail. Recruitment subsidies, such as the government’s proposed ‘golden hello’ payments, can be highly effective so long as they are carefully designed to limit deadweight, substitution and displacement effects and thus give a genuine boost to employment. In addition, we will continue to pressure the government to take further policy steps to boost job prospects, particularly if redundancies rise as sharply in the coming months as the CIPD expects.”