The private sector is set to continue to generate new jobs, according to the Chartered Institute of Personnel and Development (CIPD) and KPMG’s latest Labour Market Outlook survey.

The survey shows private sector will continue to generate jobs growth, with manufacturing (+20) and private sector services (+20) providing most jobs. However, two out of three public sector organisations (-66) will be looking to cut the size of their workforces in the first quarter of this year.

The Labour Market Outlook net employment index, measuring the difference between the proportion of employers that intend to increase total staffing levels and those that intend to decrease total staffing levels in Q1 2011, has fallen to -3 from +11 in the past quarter.