Member Article

Growth in jobs could slow

Growth in jobs could slow down just as the recovery takes hold, a survey of over 1,000 employers has suggested.

Research by the Chartered Institute of Personnel and Development shows the rate of recruitment increase has slowed significantly and the vast majority of organisations expect to give pay awards below the current rate of inflation.

Recruitment intentions among smaller firms were more positive than their larger counterparts.

Gerwyn Davies, the CIPD’s Labour Market Adviser, explained: “Employment growth, normally a lagging indicator of recovery, seems to have preceded the stronger signs of growth we’re now seeing.

“So it is unsurprising that employment intentions are now dipping just as economic growth seems to be taking hold, with employers needing to tackle the major productivity hangover affecting the UK economy.

“Weak productivity partly explains why a majority of employers expect to continue awarding below inflation pay rises for their workforce. Sustainable increases in real wages can only be delivered if organisations can boost productivity, for example through smart investment in the training, development and management of their staff.”

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