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Public sector job losses 'will lengthen recession'

Job cuts in the public sector will make the recession 'longer, harsher and deeper', according to trade union Unison.

Yesterday the CIPD and KPMG reported mounting pessism in the public sector, where the proportion of employers expecting to employ more staff has fallen by 25 percentage points from 3% in the spring to -28% this month.

Unison general secretary Dave Prentice, said: "During the recession more and more people are turning to their local councils for help. We know our members are dealing with many more requests for debt counselling and advice on housing and homelessness. In addition local economies depend on the flow of public money not drying up, to help rife out recession.

"We know many councils have serious staff shortages in vital areas such as child protection, care for the elderly, local planning and housing development, so cutting jobs makes no sense."

The CIPD'ssurvey shows the situation in the private sector is improving where the negetive balance is -2% down from -30% in the spring.

But the CIPD's chief economist John Philpott, said: "When it comes to the immediate jobs outlook, the best that can be said is things are getting worse more slowly. Employment will keep falling and unemployment is still on course to top three million in 2010. And it is far too soon to rule out another avalanche of private sector redundancies later in the year."