Government policy regarding employment could come back to cause it problems, something that could also affect recruitment agencies.
The Work Foundation, which aims to improve the quality of working life and the effectiveness of organisations, suggests that the coalition government’s decisions regarding unemployment could haunt it further down the line.
Stephen Overall, associate director for the Foundation, said that the governments decision to end programmes such as the Future Jobs Fund could cause long-term problems.
He said: “The government are cutting all these programmes in light of the public sector cuts that are coming but there doesn’t seem to be any plan of where the new jobs are going to come from.”
Mr Overall made his comments after a report from the Organisation for Economic Co-operation and Development raised concerns over the closure of such programmes.
The Office for Budget Responsibility states that overall employment will increase from 28.89 million to 30.23 million over the next five years, while public employment will decrease from 5.53 million to 4.92 million.
