Partner Article

Record employment in the UK’s professional sector says CBI

According to the latest quarterly CBI Service Sector Survey, the sector grew steadily in the three months to November and robust growth is expected to continue into early 2015.

Across the UK, the CBI speaks on behalf of 190,000 businesses which employ nearly 7 million people, about one third of the private sector-employed workforce.

The survey found that profits continued to grow in the consumer sector, aided by higher prices, whereas prices in business and professional services fell to their lowest since May 2013, meaning profits held steady.

Employment increased at its fastest pace for seven years in the business and professional sector, which includes accountancy, legal and marketing firms.

The number of employees in the consumer services sector, which includes hotels, bars, restaurants, travel and leisure firms, also increased.

With skills shortages starting to bite, expenditure on staff training in the consumer sector rose to its highest level for 15 years, and is expected to remain strong. Training costs are also expected to increase in the business and professional services sector.

The survey of 191 firms revealed that investment rose across the sector, with capital expenditure on land and buildings in the consumer sector reaching its highest level since 2010. And in business and professional services spending on IT grew to levels not seen since February 2007.

Despite this, optimism about the business situation fell at the fastest rate across the sector since February 2013.

Rain Newton-Smith, CBI director for Economics, said: “Growth across the services sector is expected to continue into the New Year.

“And it’s good to see investment spending in IT at near record levels.

“But skills shortages are starting to bite, putting more of a break on investment and future growth in consumer services.

“Therefore the spending rise in training in the sector is particularly encouraging.”

This was posted in Bdaily's Members' News section by Clare Burnett .