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UK Businesses hiring, but as slower pace

UK employers are expecting to take on fewer staff in the coming months, but are still managing to keep their heads above water in the difficult economic climate.

A report by Manpower Group revealed that businesses are showing unexpected levels of resilience, especially at a time when the economy has fallen back into recession.

The seasonally adjusted employment outlook balance fell to 1% for Q3 of 2012, from 2% in the second.

Commenting on the survey, Manpower UK managing director Mark Cahill said: “When you’re going head to head with a return to recession at home and a burgeoning euro zone crisis, by rights the jobs market should be in free fall - but that’s not what we’re seeing.

“Firms are still looking to hire albeit at a weaker pace than before but the sort of hiring that is going on is where you’d least expect it.

Hiring levels in the Finance and Business services sector is sat at 13%, while hiring in the Utilities sector has hit a five year high of 16%.

Despite this, confidence levels are mixed, ranging from 12% in the East Midlands to -6% in Scotland. The overall balance was in the positive territory, sitting at 2%.

There is also a split between large and small employers in terms of attitudes to hiring - big businesses are more optimistic, while smaller businesses continue to feel the financial pinch.

Cahill continues: “At this time of year, the jobs market always sees an influx of new entrants both from school leavers and graduates. It is encouraging to see that big businesses are looking to hire over the summer months and we welcome the various initiatives such firms have put in place - from graduate training schemes to apprenticeships.

“However if we want to pull ourselves out of recession, we’re going to need young people and others to be work ready and have the in-demand skills in order to allow start-ups and entrepreneurs to flourish.

Despite the overall tone of optimism surrounding the survey, some sectors continue to struggle.
Construction, so often seen as a bellwether of economic activity, is once again a notably poor
performer, failing to dig itself out of trouble still reporting a weak Outlook of -9%

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