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North East Employment figures show dip in recruitment

Latest employment outlook figures for the North East show a sharp drop, as increasing numbers of employers in the region reveal they will not be recruiting in the next three months.

Manpower statistics show that optimism in the region have dropped from +6% to -3%, although Ross Smith, head of Policy at the NECC is not completely convinced by the statistics.

“The figures don’t quite reflect the message we are receiving from our members,” Ross commented. “Many report that while their workforce is growing slowly, this is occurring against the backdrop of public sector cuts.”

“There is also a huge imbalance between the sectors, and while manufacturing is seeing growth, the service sector, where the bulk of jobs are, continues to struggle.”

Nationally, recruitment trends remained moderately positive at +2%, slipping for the first time in eleven quarters. The results also highlighted the return of a North-South divide, which comes as disappointing news.

Ross continued: “The government has set out with the commitment to rebalance the economy, but the economic potential of the North East is being underused.

“We now need to see much more in terns of active economic rebalancing in order to promote the region.”

The survey also highlighted the lack of necessary engineering skills; a problem Ross Smith believes is also facing businesses in the region.

“It’s definitely an issue for engineering firms in the North East, and many are struggling to find the relevant skills.

“Lots of people with the relevant skills set are heading towards retirement, so this issue is a major source of concern.”

Many businesses will now be forced to adapt to t new conditions, and will be forced to operate with far greater agility in order to survive.

“There is a huge feeling of uncertainty, and imbalance between sectors,” Ross concluded. “While many are seeing some growth, they are not always long term sales and orders, and many businesses are now looking at forward to next year in consideration of potential changes in the global economy.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .