By Claire West
In response to the Institute of Director’s (IoD) criticism of the Chartered Institute of Personnel and Development’s (CIPD) prediction that cuts in public spending and the rise in the standard rate of VAT to 20% will result in the loss of almost 1.6 million jobs across the UK economy by 2015-16, Dr John Philpott, Chief Economic Adviser says:
“Our labour market predictions are based on analysis of the experiences and detailed predictions of our 135,000 members, drawn in particular from our respected Labour Market Outlook quarterly survey, extensive analysis of published data, and a good measure of experience. The IoD appear to be relying instead on a hope that the past, when economic circumstances were very different, may repeat itself in the future.
“We can all agree that we hope job creation will outstrip job losses in the coming years. But hope is not sufficient if it is your P45 or your unsuccessful job search we are talking about. Our analysis of real world data from organisations operating across the private and public sectors is intended to give policymakers a fighting chance of preparing the policy responses necessary to maximise growth and minimise the impact of rising unemployment on individuals and communities. The IoD are entitled to disagree and correct to conclude that no-one knows for sure what the future holds. But it is in the interests of employers and jobseekers alike that we all work together, taking care to ensure our opinions do not get in the way of our collective efforts to assist policymakers in making the right decisions.”