UK Recruitment Rate is Slowing Down

The future job outlook in England is looking at a considerable growth for the first few months in 2014, but after that, recent studies show there may be a slight decrease. It won’t get as bad as the recent job drops during recessions, but more of a gradual slowing down in hiring growth and new jobs available, according to CFO World. According to the Labor Market Outlook study that was performed by the Chartered Institute of Personnel Development, the hiring plans according to employers participating in the study dropped from 65 percent to 54 percent.

The Study

The Labor Market Study found out that hiring plans by current employers in England is down to just under 55 percent, at 10 percent less than the three months prior. These were private sector employers that were comparing results from the same time the year before. The report found that recruitment was less balanced in industries like real estate, financial, food service, arts, entertainment, recreation, manufacturing, accommodation and hotel industries, and insurance industries. However in the manufacturing and production industries, they tended to be more confident than others. Some uncertainty does change the numbers slightly, according to the study.

Other Statistics

Additionally, the study looked at redundancies made by private sector firms and found that the number fell to around 18 percent, which is the lowest level in a long time. The jobless rate in England is falling more rapidly than expected though, at around 7.1 percent, according to the Office for National Statistics. The fall in unemployment is expected to be partly due to more employees who are working, but part time hours, which is showing more people overall have jobs, even if it isn’t full time work. Self employment is another reason there is a higher amount of people claiming to be employed, which is currently at a high record level for the UK.

The report found that there tends to be more consistency of hiring rates across the country, with very little difference between England and the south of England. About five percent of employers who were involved in the survey said they were cutting jobs, so luckily the problem seems to be more of an issue with new jobs and recruiting, than having to lay off current employees. For workers in England wondering about promotions, the average forecast for pay raises in the next year has gone up from 2.4 percent to about 2.6 percent, which does not include companies that currently have a pay freeze.

It looks like the UK has about the same problems as other countries, like the U.S., as far as a gradual rise and fall in job growth. However, it isn’t all bad, and hopefully in the near future, the job market can again turn around.

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