July 25, 2011
The full extent of UK redundancies became clear this week, as figures showed that in the three years since the recession broke, employers have paid out £13.4 billion in redundancy payments.
Data obtained from HM Revenue and Customs through a Freedom of Information Act request shows the cost of redundancy pay has only fallen by 2% in the last year - with the average worker getting £9,362 in payments.
In total there were 470,000 redundancies in the year to March, down from 480,000 in the previous 12 months, and according to some, the wave of payouts to private-sector employees during and since the recession could now be coming to an end.
However, payments to public-sector workers now in the firing line as a result of spending cuts look set to increase.
"We may continue to see these high levels of redundancy even as the economy continues its recovery, as businesses may need to use redundancy as they continue to reshape their businesses,” said the report.
“Recruitment may be picking up but these government figures suggest that churn of jobs remains high."
The news comes days after the confectioner Thorntons said it would be putting 1,000 jobs at risk, following the closing of 180 shops throughout the UK.
