Business Analysts Concerned Over Private Sector Challenge
How will the private sector respond to thousands of public sector job losses?
With almost half a million public sector jobs expected to go between now and 2014-15, the Government is leaning heavily on the private sector with the expectation that businesses can employ some of those who have lost their jobs.
However, experts have warned that this is an enormous challenge, and private companies would need extra support to assist the scale of redundancies.
According to TheBusinessDesk, Professor David Bailey of Coventry Business School commented:
“The scale of the task faced by the private sector – and the Government is massive. When you factor in the multiplier effect of the public sector job losses, the private sector is going to have to create between 1.5 to 2m jobs.
“It is only right therefore that the Government should talk about how it is going to create the conditions for growth.”
The government has outlined a monetary policy which includes a plan for growth and support for businesses. In a speech yesterday at the annual CBI conference, Prime Minister David Cameron said that the government would use “all powers at its disposal” to create the right framework for enterprise and business investment.
The key points included ┬ú200m for new technology centres, a focus on business growth, and targeting the manufacturing industry with a planned boost for exports.
Professor Bailey expressed concerns about the many factors that are beyond the government’s control, and added that it is “vital that British goods are made as attractive as possible.”