- Employment Outlook of +7% for East, 13th consecutive quarter of optimism
- Outlook stands above the national average
- Rising skills shortages could drive pay increases
The Manpower Employment Outlook Survey is based on responses from 2,100 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.
“The East continues to be very confident when it comes to hiring, with an Outlook above the national average going into the third quarter. However, while employers are continuing to look at creating new roles, they are finding it increasingly hard to find candidates in the region to fill them. This is particularly so in Cambridge, where we’re seeing skills shortages across the board, while in Peterborough, candidates experienced in sales, call centre and IT roles are in the shortest supply and the highest demand,” says Krissie Davies, Operations Director at Manpower UK.
“Employers may be challenged to find the people they need, but for candidates the picture is more positive. This market enables those looking for roles to negotiate on salary and other benefits, so we may start to see some uplift in pay in the region. Where there are talent shortages, those looking to move into a new career may find the leap easier if they can demonstrate to their prospective employer that they have transferable skills that will help them get up the curve quickly.”
Going into the third quarter of 2015, the national Seasonally Adjusted Net Employment Outlook remains at +6% for the fourth successive quarter. While our research shows that demand for staff remains strong, and employment stands at a 40-year record high, a shortage of candidates means many employers are struggling to fill the vacancies. ManpowerGroup has identified an acute talent shortage that is jeopardising the Government’s target to create 2 million jobs over the next five years.
The supply problem is most acute in the north of England. Jobs optimism in the North West and North East stand above the national average (+7% and +10% respectively), but a rapidly worsening skills shortage means northern employers can’t fill vacant roles. The labour supply problem is also apparent in the health sector. James Hick, ManpowerGroup Solutions UK Managing Director, adds: “David Cameron has pledged to recruit 5,000 new GPs to extend surgery opening hours. That will improve care for millions, but it’s hard to see where those doctors will come from. As a major recruiter of GPs, we see that there are not enough homegrown new clinicians.”
Whilst the north of England has a problem finding candidates to fill all the available roles, over the border in Scotland, the problem is lack of demand. With a score of 0%, Scotland is flatlining when it comes to job creation and is the worst-performing part of the UK.
In the rest of the country, the jobs market looks positive going into the third quarter. The South West, London and the East Midlands are particularly positive, at +9%. Wales (+8%) and the North West (+7%) also beat the national average, while the West Midlands (+5%), the South East (+4%), Yorkshire and Humberside (+3%) and Northern Ireland (+2%) also record optimistic Outlooks.
About the Survey
The world leader in innovative workforce solutions, ManpowerGroup releases the Manpower Employment Outlook Survey quarterly to measure employers’ intentions to increase or decrease the number of employees in their workforce during the next quarter. It is the longest running, most extensive, forward-looking employment survey in the world, polling nearly 59,000 employers in 42 countries and territories. The survey serves as a bellwether of labour market trends and activities and is regularly used to inform the Bank of England’s Inflation Reports, as well as a regular data source for the European Commission, informing its EU Employment Situation and Social Outlook report the Monthly Monitor. ManpowerGroup’s independent survey data is also sourced by financial analysts and economists around the world to help determine where labour markets are headed.
http://www.manpowergroup.co.uk/meos/
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