Acas, the employment relations service, has published a new policy discussion paper that sheds light on the longer term effects of the downturn on the UK employment landscape. The paper highlights that although the downturn will have a delayed impact on the public sector, it will result in job losses.

According to Acas, despite the private sector taking the majority of the redundancy blows to date, the recession will have a long lasting impact on the public sector.

The full effects may not be apparent immediately but local councils are already experiencing reduced income from business rates and other sources. Spending on public services will also be reduced in the near future.

The 2009 Budget announced ambitious efficiency plans from 2011 when the next 3 year spending review period begins, including £2.3 billion of savings in health. At the same time as public services are squeezed financially, as the recession intensifies there is a growing demand for public services.

Ed Sweeney, Acas Chair commented: “The impact of the recession on the employment landscape is still emerging, but it is already a picture that is full of contradictions, complexities and challenges. As the workplace responds to the pressures brought about by the downturn, it has never been more important to engage employees and maintain morale. Otherwise there is an increased risk of disputes arising.”