Manufacturing headcount to rise?

Dr John Philpott, chief economic adviser at the Chartered Institute of Personnel and Development (CIPD), said the figures for the August-October 2010 quarter published by the Office for National Statistics (ONS were much worse than expected and the opposite of what was wanted in the run-up to Christmas, with no joy and very little comfort on offer. "It is especially disappointing," he commented, "to see the positive momentum that had built up earlier in 2010 appear to run out of steam even before the full impact of the coalition government's spending cuts and tax hikes take effect. This does not bode well for 2011." Manufacturing – at the forefront of the export led economic recovery – was still downsizing and was now joined by construction which will be a part of the private sector set to feel the brunt of cuts in public spending, claimed CIPD. Williamson however said: "Forward-looking survey data suggest that the unemployment rate is likely to continue to rise in coming months as job losses in the public sector are accompanied by lower payroll numbers in private sector services and construction. These losses will be only partially offset by rising headcounts in the manufacturing sector. The main story from yesterday's data was the rise in unemployment to above 2.5 million, taking the unemployment rate to 7.9%, just a little below February's high of 8.0%. "We may avoid a double-dip recession in terms of economic growth, but a double-dip in the labour market is already becoming evident," Williamson concluded. In UK manufacturing there were 2.494 million jobs in the August to October period, 20,000 (0.8%) fewer than in the previous three months; 95.000 (3.7%) fewer than a year earlier.