Public sector spending cuts need to be correctly thought out in order to avoid unnecessary job losses for IT contractors and other workers, it is claimed.

As the new government announces plans to cut annual public sector spending by £6 billion, the Recruitment & Employment Confederation (REC) insists this can be achieved through sustainable reform.

By using flexible and temporary workers, such as IT contractors, a strategic approach to resourcing which responds to peaks and troughs in demand can negate the need for widespread panic job cuts, the REC claims.

Tom Hadley, the REC's director of external relations, said that "knee-jerk" cuts would seriously damage frontline services.

"The reality is that temporary and contract workers are not brought in on a whim - they perform crucial frontline roles. Challenging pre-conceived ideas and off-the-peg solutions will play a key role in achieving sustainable reform."

When the office for National Statistics revealed last week that unemployment had risen to 2.51 million, the REC said that boosting the flexible labour market should be a top priority for the government.