Workforce planning during recession

Robinson D | Opinion Paper OP22 | Institute for Employment Studies | Sep 2010

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Experience from previous recessions suggests that the recovery of full employment lags a year or so behind economic recovery.

Even when private sector companies are once more successful, there may be a natural disinclination to recruit to previous levels until there is greater certainty about the economy.

In 2010, deep budget cuts were hitting the public sector, and would have a big impact on central and local government and on the NHS in the following years.

Taken together, these two factors meant that the labour market was unlikely to return to the buoyant days of the early 2000s for the foreseeable future.