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Employment set to grow, say CIPD

Employment is set to grow steadily throughout the remainder of the year, according to the latest CIPD Labour Market Outlook.

The research found net employment intentions remain positive for the third quarter of the year, representing the third consecutive quarter of projected growth.

Positive hiring prospects in the public sector compensated for declines in the private sector, particular in manufacturing, where net employment balance has fallen to +13 from +32 since the last quarter.

Almost a quarter of employees will be hired on a part-time basis, a reduction from the growth in part-time employment displayed in official statistics.

More than a fifth of employers say they will be increasing the proportion of temporary workers during the next 12 months, many citing the uncertain economic outlook, desire to lower costs and fitting in with the business cycle as the main drivers for choosing temporary workers.

Gerwyn Davies, Labour Market Adviser at the CIPD, said: “The shift to more part-time and temporary employment looks set to continue to drive the jobs market further along the road to recovery. However, while this may drive up employment levels to reach new heights in the coming months, it may also continue to put downward pressure on the living and working standards of an increasing proportion of employees.

“Employers’ focus on cost and risk will continue to squeeze wage growth for most employees, and may compel an increasing number of people to work fewer hours in less secure forms of employment. “This may lead to even higher employee retention rates, which have also risen to recent highs; as an increasing number of employees stay put for fear of either losing their jobs or joining a firm on less generous and secure terms than the ones they currently enjoy. For most, work in some form will be better than no work at all.

“However, many employees and jobseekers could be forgiven for being sceptical about the strength or security of the employment market recovery while they continue to have to settle for part-time or temporary work. The sustainability of the recovery, supported by growing consumer confidence, may well depend on the extent to which firms are able to convert these part-time and temporary jobs into more full-time and permanent roles.”

This was posted in Bdaily's Members' News section by Tom Keighley .