The REC has responded to Chancellor George Osborne’s announcement on where the £6 billion of public expenditure cuts will be made over the next year.

The REC has responded to Chancellor George Osborne’s announcement on where the £6 billion of public expenditure cuts will be made over the next year.

Following an earlier statement from REC Chief Executive Kevin Green before the Treasury announced where the axe would fall, Tom Hadley, the REC’s Director of External Relations has given an initial response as to how the proposed cuts could affect the recruitment industry.

He says:

“Today’s announcement has not provided all the details on where cuts will fall, although the expected freeze on public sector recruitment was confirmed. One of the concerns here is that new skills and competencies may need to be bought in by public bodies to manage the change process.

“An area that is expected to come under pressure is temporary staffing costs. The reality is that there are real benefits in being able ‘flex’ staffing requirements to meet peaks in demand and avoid undue pressure on the permanent workforce.

“Today’s announcement did include a commitment to cull the use of consultants but there will still be a need to bring in highly skilled experts to drive specific projects. This is where interim managers or other temporary staff can play a leading and cost-effective role.”

Hadley concluded:

“There will be huge changes in the way that public services are delivered. In the mid and longer term, these will require a greater need for flexible staffing rather than less. Looking ahead, we will need to monitor the impact that public sector cuts could have the UK’s recovering but fragile jobs market.”

The REC will continue to examine in detail the contents of the Treasury’s programme and will inform members in due course of any further impact that could result on the recruitment industry.
source:http://www.rec.uk.com/press/news/1080