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Financial Times:
Autumn Statement 2014: 1m more public sector jobs to go

3 December 2014

Another 1m public sector jobs are expected to be lost over the next five years as part of the latest squeeze on the public finances. ... Adjusted for inflation, wages have fallen by about a 10th since the financial crisis, something that has not been experienced in Britain since the early 1920s. ... The OBR expects rising employment in the private sector to cushion the impact of the loss of state jobs, as proved to be the case for the first round of losses, where despite warnings of spiralling unemployment the private sector picked up the slack. Professor John van Reenen, director of the Centre for Economic Performance at the London School of Economics, said the fall in real wages had been one of the main reasons why unemployment had not risen by more in the aftermath of the crisis. ''That has been very tough on people but it has essentially priced people back into jobs'', he said.

This article was published by The Financial Times on December 3, 2014
Link to article here

Related links
John Van Reenen webpage
Productivity and Innovation Programme webpage

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