Jobs 'bloodbath’ looms in Northern Ireland's public sector

Over 10,000 posts here now |at risk, economist warns

By Lindsay Fergus
Tuesday, 16 June 2009

Thousands of public sector jobs in Northern Ireland could be axed over the next five years as the government is forced to pay off billions of pounds in borrowed money, a senior economist warned today.

Up to 10,000 jobs in the province and 350,000 across the UK are at risk as a result of the economic downturn and because government debt has now soared to record levels.

Northern Ireland is the most dependent region in the UK on the public sector employing 220,000 people. John Philpott, chief economist of the Chartered Institute of Personnel (CIPD) said: “The public sector has yet to feel the full impact of the recession and the resultant bloodbath in the public finances.” Local economist John Simpson believes as many as 3,000 public sector jobs could be lost in Northern Ireland every year over the next three years.

He said: “The public sector in Northern Ireland makes up about 32% of employment. We already know public sector spending beyond 2011 will possibly be shrinking in real terms. We are bound to get our share of the job losses.

“The Treasury is now forecasting that public sector spending will reduce after 2011.

“Under the Barnett Formula we simply won’t have the money to maintain the present scale of |public sector spending.”

Cuts in public spending will also have a indirect impact on private sector jobs, Mr Philpott added, but from 2011 on it is hoped the economy will be strong enough to see renewed job creation.

“The CIPD's current estimate is that the fiscal squeeze implied by government plans will result in a total of 350,000 job cuts in the public sector overall between 2010/11 and 2014/15.

“This will be preceded by about 30,000 cuts in local authorities in the next year.”

Mr Philpott said the likely scale of job cuts required would “inevitably have an impact on levels of public service provision”.

Shadow Chancellor George Osborne said on Monday it would be “ridiculous to pretend there won't be cuts” in public spending in the coming years.”

Comments

36 Comments

Hello. I've been away from NI for many years dealing with process re-engineering for public and private organisations. If we can take the tribalism and 'I've a right to my job' out of the argument the answer is pretty plain.

NI/Wales/Scotland draws down a hefty lump of money from the UK growth engine i.e. the city, ie. financial services and wealth creation in England. Scotland had some independence in RBS. But, oh dear!

The slush fund for NI is gone. NI doesn't really stand on its own two feet. We all know that. The doubling up I've seen here is appalling. Seperation of services that work perfectly well in the wider UK is purely job pretection. The 'oh it different here' I've heard from NHS trusts/Housing Exec/PSNI. Ist different because you make it so. The gravy train is gone. Change is a must.

Posted by bestpleased | 29.07.09, 15:02 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

According to the statistics office the working population in NI is 665,072. If this is true then 33% of the working population is employed by the the government to administrate and whatever else the other 66% of the population. Am I harsh to suggest this seems a bit silly?

Posted by Bewildered | 18.06.09, 15:04 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

Sense at last - but will it be delivered.
I hope civil servants selected for redundancy will be those with the greatest occurrences of sickness absence. We should not pay taxes for a population who take sick leave as an additional entitlement to annual holidays.

I hope attention will also be directed to those who can retire at 60 on a full pension. The country just simply cannot afford this excess.

Unfortunatley I have no confidence that our local assembly will be able to grasp this nettle.

Posted by paul | 18.06.09, 14:44 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

Finally a subject that actually directly involves Mickey and he chooses not to comment! (not enough potential for displays of intollerance and bigotry I suspect)...pretty sad

Posted by mark | 17.06.09, 10:51 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

220,000 employed by public service ? Out of a population of 1.5 mill. Even guessing that about a quarter of our population is at or pre school, unemployed or retired that means as many as possibly 1 in 4 jobs are in the public service. I can't believe that. Any figures to back these claims by the reporters.

Posted by john | 17.06.09, 00:14 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

MS- BT's resident intermediate social class knowall without a professional qualification comments again
BTW people, MS's opinion is always right

Posted by conor | 16.06.09, 22:01 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

Getting rid of all the "civil servants" who are employed to translate & duplicate all the paperwork into the Irish language should take care of that!!.

Posted by gary | 16.06.09, 21:05 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

Folk with a ship on their shoulder sticking the boot into Civil Servants again?? An easy target for morons with nothing better to do. I've worked in both the private and publice sector, I always had to work harder, smarter and longer. For years I was in the junior grades working for a pittance, (I think McDonalds pays it staff better). Thankfully the reward for my hard work has been that I've been able to climb the ladder and make it to management.

Posted by Honest Joe | 16.06.09, 20:24 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

"Bloodbath"? Oh dear! No, no, no. What term would this journalist use if there were a serious terrorist incident? Let's be careful with the language - it will only stretch so far. This is a case of the title distracting from the content.

Posted by TH | 16.06.09, 17:34 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

Its great to see so much compassion for people who will potentially lose their jobs. With families and mortgages to pay! Its not the fault of the individual if the civil service needs modernising, with an improved work ethic . To those of you who are just plain jealous of their benefits, why dont you just apply for a job there?

Posted by Neill | 16.06.09, 17:07 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

Population of approx 1.8 million mike. (work smarter indeed)

With accuracy like that you would go far in the public sector!!

Posted by HB | 16.06.09, 16:44 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

Considering that they are reducing councils from 26 to 10 by 2011, plus they have so many short term temporary staff that can be jettisoned and they have a bucket load leaving or retiring I cant imagine the 10,000 figure being to hard to achieve.

What about a cull of retail and service sector with their couldnt care less useless staff who cant help you .

How about tests in for self employed trademen so they know what coming on time & date agreed means!

Creative writing for journalists I wish.

Posted by john | 16.06.09, 15:51 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

This is both inevitable and overdue. Sorry to all the "public servants" but nobody owes you a living, whoever or whatever you are. The British taxpayer, who foots the bill for everyone employed in the NICS, simply cannot afford this dinosaur luxury anymore. At long last Northern Ireland will be forced to enter the real world, and the ridiculous house prices will be affordable again - HAPPY DAYS!

Posted by Graeme | 16.06.09, 15:48 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

Annoyed - 'Why all the cynicism about public servants? We virtually run the country.'

Said all there mate!!! Virtually.
Nothing virtual about guaranteed pensions, indefinite sick leave, every excuse for a holiday (we don't all get 2 in May you know!) etc etc.

Time this country 'grew up' and you all tokk responsibility for your careers rather than hiding in this 'virtual' job scheme in NICS!

Posted by public excess | 16.06.09, 15:46 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

I thought my comment was perfectly clear. Individuals in NI (University graduates included) have no incentive to compete. Too many have come to expect a public job for life.

I have seen this first hand. People would 'study' a uni course with one thing in mind, employment in the public sector. Easy to get, un-demanding and 100% secure.

Not only do they earn comparative wages vs the private sector they get better pension provision.

Politicians are not alone, elbow deep in the public purse.

Posted by M S | 16.06.09, 15:46 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

"CS: - Public sector workers earn a lot less than the private sector. "
Not true.
There is very little between Public and Private sector pay.
The public sector generally have much better benefits.
This include better overtime, pension, holiday, sick pay.
Also new retirement/state pension age only applies to the private section.

Posted by John | 16.06.09, 15:21 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

I agree that cutting public sector jobs would have a detrimental effect on the NI economy and should be approached in a sensible manner (as posted by HB).

However, as a secondee to the NICS from the private sector, I was appalled at the attitude of my colleagues and management - there was no incentive to achieve, no direction and as a result everyone acted like they were on a go slow.

They would be eaten alive in the private sector.

Posted by Laissez-faire | 16.06.09, 15:11 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

Well said HB. You hit the nail on the head.

Posted by Merit | 16.06.09, 15:04 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

public sector is a growth industry ,,,a total joke,,,cut them to the bare knuckle let them join the real world

Posted by HG | 16.06.09, 14:52 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

The civil service has been overstaffed artificially for years. Let's hope the gravy train is now over and more realistics staff levels are set for a population of 1.5 million. The phrase work smarter rather than throw more staff at it comes to mind!

Posted by Mike | 16.06.09, 14:09 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

36 Comments

In Pictures: CIPR PRide Awards

In Pictures: CIPR PRide Awards

Pub of the Year Awards

Digital Advertising Awards Gala

Digital Advertising Awards Gala

Digital Advertising Awards Gala

Carbon Rankings - UK's Top 100 Firms

Click here for rankings and video

TeleBest: World's most powerful logos

eleBest: World's most powerful logos

Click here to launch gallery

NI's Top 100 Companies 2011

Top 100 Companies

Who's up and who's down in 2011

In pictures: Doing the business

  • PMST Apprentice of the Year 2011
  • Graham Dillon of Tandragee, Co Armagh (centre), accepts the Adult Apprentice Award: Best Attendance at the PMST Apprentice of the Year 2011 ceremony held this week in Belfast City Hall. Also pictured are Keith Poole (left) of CHC Group, Craigavon, who employ Graham, and Nick Hayward of category sponser ATL
  • Ciara Walls of Whitehead, Co Antrim (centre), accepts the Adult Apprentice Award: Most Consistently High Exam Results, at the PMST Apprentice of the Year 2011 ceremony held this week in Belfast City Hall. Also pictured is Professor Jackie McCoy (right) of the University of Ulster, the category sponsor, and Nicola Cherry of Fusion Heating of Killyleagh, Co Down, who employ Ciara

Cream of the crop in the business world

BT Business TV


Business Digest by Email


Sign up for your free weekly business newsletter

Latest Comments