One in three firms plan redundancies
One in three employers in the UK are planning to make redundancies by the end of September 2020, according to a report.
The Chartered Institute of Personnel and Development (CIPD) polled 2,009 employers and found 33% had planned to cut jobs in Q2 2020.
In the private sector, 38% of firms plan to make redundancies, compared to 16% in the public sector.
According to the survey, the average direct cost to employers of making redundancies is estimated to be £11,125 per employee.
However, nearly half of employers (49%) in this summer survey are planning to recruit in the next three months of 2020.
UK employers also intend to keep a tight handle on pay rises over the next 12 months, especially in the private sector.
Gerwyn Davies, a senior labour market analyst at the CIPD, said.
"This is the weakest set of data we've seen for several years.
"Until now, redundancies have been low - no doubt due to the furlough scheme - but we expect to see more redundancies come through this autumn, especially in the private sector once the scheme closes.
"Hiring confidence is rising tentatively, but this probably won't be enough to offset the rise in redundancies and the number of new graduates and school leavers entering the labour market over the next few months."
Talk to us about managing costs.