Unemployment and motivation

What a bleak picture for the job prospects of millions of people in the UK in 2012. Two separate surveys - one from the CPID and another from totaljobs.com - both predict a dire 2012 for employment in the UK. Unemployment is predicted to move towards 3.0 million as further public sector job cuts are not matched by employment growth in the private sector.

The CIPD (the professional organisation representing HR directors and managers) makes a link between rising unemployment and worsening employee motivation. Their logic is pretty simple. The doom and gloom surrounding prospects for the economy feeds directly into greater uncertainty amongst those in work. The pressure of lower demand rising costs forces employers to squeeze pay, resulting in employees experiencing a continued squeeze on their take-home pay, with the cost of living still set to outpace wages, despite expected falls in inflation.

Those out of work face a desperate challenge to find employment. Those in work face uncertainty about their job prospects and pay. A miserable situation in which to enter a new year.