Job market news

Monday, 14 February 2011

Effective people management and flexibility will continue to be crucial if public services, and the businesses which depend upon them, are to survive the effect of these current tight times.

Source: TAEN (The Experts in Age & Employment)

Redundancies look set to rise sharply in the first quarter of 2011 in the public sector but job creation in the private sector offers some hope to the overall employment picture, according to this quarter’s Labour Market Outlook report from the Chartered Institute of Personnel and Development (CIPD) and KPMG.

The survey of 750 employers indicates that overall employment levels, which have held up relatively well in 2010, are heading for a fall in 2011. The Labour Market Outlook net employment index, which measures the difference between the proportion of employers that intend to increase total staffing levels and those that intend to decrease total staffing levels in the first quarter of 2011, has fallen to -3 from +11 in the past three months.

The private sector is expected to continue to generate new jobs, but at a slower pace than in previous quarters.  Manufacturing and private sector services are expecting to provide the majority of the new jobs. In contrast, two thirds of public sector organisations will be looking to reduce the size of their workforces in the first quarter of 2011.

The report’s 12 month index, which gives a longer-term perspective on recruitment and redundancy intentions, has also fallen.  One in three (33 per cent) of employers say they will be looking to employ fewer people in 2011 as a result of the Comprehensive Spending Review. And 15 per cent of the private sector firms surveyed plan to offshore UK jobs to other parts of the world over the next 12 months.

As a result of the survey’s findings, the CIPD is now expecting that unemployment in the UK will continue to rise into 2012.

Recruitment: permanent and temporary jobs increased at the fastest rate for several months during January, according to this month’s Report on Jobs from the Recruitment and Employment Confederation (REC) and KPMG.

The number of permanent and temporary appointments grew at a faster rate last month than at any time in the past six and seven months respectively. Demand for IT and computing workers showed the strongest growth.

However, employers are still not recruiting in large numbers, according to the report which is based on a monthly survey of 400 recruitment and employment consultancies.

Commenting on the findings, Bernard Brown, head of business services at KPMG, said:

“The latest figures are encouraging. Employers across all sectors have been expanding their workforce in January, with no real pressure building on wage inflation.

“Importantly, there was a real bounce from the previous month’s figures for blue collar, engineering and IT related jobs. However, it is too early to speculate whether these are the signs of a private sector led recovery. With looming public sector job cuts, the VAT rise and slowing economic growth, the UK job market is likely to remain volatile over the coming months.”