- Outlook of +9% for East of England reported
- Strong demand for digital expertise
- However, skills shortages and low application rates prevail
The Manpower Employment Outlook Survey is based on responses from 2,110 UK employers. It asks whether employers intend to hire additional workers or reduce the size of their workforce in the coming quarter. It is the most comprehensive, forward-looking employment survey of its kind and is used as a key economic statistic by both the Bank of England and the UK government.
Krissie Davies, Operations Director at Manpower, said: “There is real optimism in the region, and it’s great to see that we’re once again above the national average. However, employers are continuing to see a shortage of top quality applicants across both temporary and permanent roles.”
“In Peterborough, we’re seeing plenty of new opportunities in digital marketing and search engine optimisation, as businesses increasingly realise the benefits of having in-house experts to help raise their online presence. Given the demand for these skills, we’re finding that employers have to offer competitive compensation packages in a bid to attract and retain tech-savvy millennials that are like gold dust. The picture is more mixed in Cambridge, where recruitment has slowed since the last quarter, with manufacturing in particular taking a hit from the closure of the Scanfil plant. However, there is better news for Cambridge’s construction workers, as the housing market in the area is booming due to the high demand for more affordable homes.”
Manpower today warns that a British exit from the European Union could leave businesses facing a critical talent shortage, with EU workers no longer able to move freely to the UK. The national seasonally adjusted Net Employment Outlook has fallen 1% for the second successive quarter to +5%. This second successive fall shows that, while there is still a strong requirement for new workers, overall businesses’ hiring intentions appear to have been hit by Brexit uncertainty.
James Hick, ManpowerGroup Solutions Managing Director: “Employment in the UK is at an all-time high, but British businesses continue to create more jobs. Britain added 404,000 jobs in the last 12 months alone, and despite the uncertainties of Brexit, employers tell us they still need more workers. Make no mistake about the vital contribution EU workers make to Britain. There are currently 2.2m people from the EU working in the UK, but not all of them will stay here in the long term and we need the opportunity to replace the skills they bring. Britain today is a magnet for international talent, from finance to tech to the NHS. Leaving the EU will make it much more difficult to attract the brightest and best. It will mean more bureaucracy for those coming to Britain and salaries could be less competitive, especially if sterling falls, as many warn it could – including the Bank of England. To compete on the world stage British businesses need the flexibility and free movement that EU membership brings.”
For the second successive quarter every region of the country reports a positive Outlook. The West Midlands and Wales are the most positive regions (+11%) followed by the North East (+10%) and the East Midlands (+9%). Outside the North East, the Northern Powerhouse has struggled with the North West matching the national average (+5%) and Yorkshire & Humberside reporting the least optimistic Outlook of the country (+1%). Optimism across the South of England has fallen, with London down two points to +7%, the South East down one point to +3%, and the South West, the biggest faller, down ten points to +1%. Scotland (+3%) and Northern Ireland (+5%) record falls of three and two points respectively.
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