According to a recent labour market outlook survey conducted by the Chartered Institute of Personnel and Development (CIPD) in conjunction with consultants KPMG, while the UK job market continues to contract, the rate at which it is shrinking has slowed significantly, with huge differences between the public and private sectors.

Using a measurement known as the whole economy net employment intentions figure, which measures the difference between the proportion of employers who expect their total staff levels to rise and those who expect them to fall, the survey demonstrates that the rate of shrinkage has decreased markedly since the previous quarter - down to -10% from -19%.

What the survey most clearly showed was a striking difference in outlook between the public and private sectors.

Last quarter, the private sector’s employment intentions stood at -30%. This latest survey, however, puts the figure at -2%, which the CIPD argues is evidence of a dramatic change in perceptions throughout the sector.

In the public sector, on the other hand, the figures tell a very different story. From a level of -3% in the previous quarter, the employment intention has now plummeted to a remarkable -28%, in an almost exact inversion of the situation in the private sector.

While the reasons for this remain largely unclear, the CIPD speculates that the collapse of employment intentions in the public sector could be due to fears of job cuts in the next Parliament. It comments that its data suggests: “that anticipation of cuts in public spending after the elections is already having a significant impact on behaviour. The jobs outlook looks particularly depressing in local government and higher education.”

Technorati Tags: Employment Intentions, Employment Outlook, Recession