Public sector job cuts 'need careful consideration'

Keeping the public sector ticking over will be vital for contractors looking for employment.

The new coalition government needs to handle the job cuts in the private sector with care, according to an expert, who said getting it wrong could spell trouble for contractors and the UK economy alike.

Stephen Overell, associate director at the Work Foundation, said that the plans to cut public sector jobs could create a problem for the UK because the private sector has reduced the amount of new roles it has been offering in recent years.

"The private sector over recent years has not really been creating many jobs. Most new jobs come from the public sector so that is also likely to mean that if you are cutting back on public sector jobs, the private sector cannot mop up the numbers without work," he stated.

A recent report from the Organisation for Economic Co-operation and Development predicted that the UK unemployment rate would remain at nearly eight per cent at the end of 2011.