Private sector recruitment should more than compensate for public sector job losses, says a report.
Research published by the Centre for Policy Studies today (June 29th) may provide good news for IT contractors who have lost work as a result of public sector cuts.
A report from the right-wing thinktank said that while public sector employment fell by 143,000 in the 12 months to the end of March 2011, during which time private sector employment rose by 517,000, the Daily Mail reports.
While a further 370,000 job losses are expected from the public sector within the next five years, job creation from the private sector is expected to total 1.3 million, creating new opportunities for contractors.
“Recent data suggest that it is reasonable for the coalition to expect private sector job increases to be far larger than the reduction in the number of public sector employees,” the newspaper reports the document as saying.
The news comes as Birmingham Council was urged to reconsider outsourcing 55 IT jobs to India and move them to the north of England instead.