Hiring optimism at eight-year high for employers

With all UK sectors experiencing a jobs recovery, employers are at their most optimistic in eight years with regards to hiring.

This is according to the CIPD and Adecco’s latest Labour Market Outlook report, which surveyed more than 1,000 UK employers across the country.

The quarterly report’s net employment intentions balance, which measures the difference between the proportion of employers expecting to add jobs and those planning to cut them, has risen sharply to +27 for the second quarter of 2021, compared with +11 in the first quarter of the year.

The data also shows that basic pay expectations are set to increase from 1% to 2% in the next 12 months.

Gerwyn Davies, Senior Labour Market Adviser at the CIPD, the professional body for HR and people development, said, “More jobs and improved pay prospects should give us all reason to cheer, but a solid jobs recovery must be focused on better jobs, not just more jobs. To offset the emerging threat of recruitment difficulties, employers should be reviewing not just their recruitment practices, but also the quality of work they offer – such as employment conditions, the possibility of promotion, training opportunities and the right balance of flexibility and security. There’s more to good work than raising wages.

“By offering better quality jobs, employers will be in a better position to attract and retain the staff they need, particularly in sectors that have traditionally relied on EU workers, the supply of which has fallen sharply. New limits to the supply of unskilled migrant labour and the switch to new ways of working presents many employers with an incentive to review job quality. Now is the optimal time for the HR profession to raise its voice on this issue – both to ease recruitment difficulties and raise productivity.”

Alex Fleming, Region President of Northern Europe at Adecco, added, “It is really encouraging to see that all indicators of recovery are positive in this quarter’s Labour Market Outlook, as we continue working towards the new era of work.

“The net employment intentions balance across all sectors is at its highest level since winter 2013, but the disruption of Brexit, paired with the lingering threat of COVID-19, means that now more than ever, organisations must remain committed to levelling up and building back better.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.