Government cuts may lead to recruitment shortfall

Private Sector crucial to stabilising the UK job marketPublic sector cuts may see graduate recruitment shortfall outside of the south east

A new report from The Work Foundation indicates that the government cuts in the public sector may lead to a ‘brain drain’ amongst businesses outside the south east of England as graduates move south to ensure they get the best chance of landing a graduate job.

A large proportion of graduates are employed in the public sector particularly in the north and in the midlands and the proposed cuts to public sector by the coalition government will see a fall in positions available to graduates and with graduate unemployment currently at its highest in the last fifteen years many graduates could choose to leave the cities in the north and midlands of England and maximise their job opportunities by moving to the south east.

The government cuts may also impact on graduate recruitment for the private sector as any large movement of graduates towards the south east could leave businesses struggling with a shortage of skilled educated graduates.

Jonathan Wright one of the main authors of the report called for the government to step in and “develop strategies aimed at integrating the highly skilled into local private sector jobs.” There have been recent signs that the job market is improving with January seeing an increase in permanently placed employees so perhaps with close work with recruitment agencies the private sector may be able to fill some of the void left by the public sector job cuts.

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