- Employment Outlook of +10% for the East
- But skills shortages are fuelling a rise in counter offers
- Employers need to speed up hiring decisions or face losing out on talent
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.
“Employers in the East are the most optimistic in the UK going into the second quarter of 2016, and it’s fantastic to see we are maintaining our strong start to the year,” said Krissie Davies, Operations Director at Manpower. “This is the sixth consecutive quarter of above average hiring intentions in the East, as employers continue to seek good candidates, particularly in customer service and IT.
“We’re seeing the impact of skills shortages on all types of roles; Cambridge in particular is feeling the pressure on jobs in engineering, IT and scientific sectors. These talent shortages are fuelling a rise in the number of counter offers made to employees thinking of moving on, and many candidates are opting to accept the counter offer and remain with their current employer.
“Counter offers could prove risky for employers though. It’s important to understand the primary motivations behind seeking opportunities elsewhere as these are not always financial. We often see candidates on the job hunt again several months after accepting a counter offer once they have realised that they still desire change.
“Some employers in the region seem to be struggling to keep up with the pace of the labour market. Many, often those with less frequent recruitment requirements, can be slow to take hiring decisions and subsequently lose good quality candidates who take up opportunities elsewhere.
“In Peterborough, the skills in highest demand are in the customer service, transport and warehousing industries. We’ve also noticed reduced demand for sales people in the area, easing some of the talent shortages Peterborough employers had been experiencing.”
Nationally, hiring intentions among Britain’s employers in the first half of 2016 are at their strongest level since 2007. The national seasonally adjusted Net Employment Outlook is at +7% for the second consecutive quarter, a start to the year not seen for nearly a decade. But there are questions about whether this demand for talent can be fulfilled if Britain votes to leave the European Union.
James Hick, ManpowerGroup Solutions Managing Director: “British businesses continue to create the job opportunities that have helped get Britain back to work since the 2008 financial crisis. But while there’s clearly the demand for workers, we also need to protect the supply of talent. Employers of all shapes and sizes rely on the free movement of people inside Europe to find the skills they need. The latest employment statistics showed that of the 521,000 jobs created in the last 12 months, 215,000 of these were filled by people from elsewhere in the EU. Let’s be realistic: we simply won’t be able to replace overnight the skills these people bring to the UK if we leave the EU, and it’s our economy that will suffer. Unemployment is at its lowest level since 2006 – it’s unrealistic to suggest there’s enough slack in the labour market out there to fill these jobs.”
The West Midlands (+9%), London (+10%), and the South West (+10%) all stand above the national average. The South East (+5%) and the East Midlands (+7%) both report falls from Q1 2016. The Outlooks in Wales (+3%) and Scotland (+6%) are in positive territory, while Northern Ireland reports its most positive outlook since 2007, at +8%. The picture in the north of England is mixed, with the North East (+6%) and North West (+2%) below the national average, while Yorkshire & the Humber matches the national average at +7%.
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For further information, please contact:
Brunswick – Miranda Ward 020 7404 5959
Email: [email protected]
Twitter: #MEOSUK
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