South West jobs optimism rebounding
The first quarter of 2016 has seen a boost of confidence within the jobs market in the South West with hiring intentions of +9% according to Manpower, the world’s workforce experts. This is a jump of seven percentage points from the last quarter.
The Manpower Employment Outlook Survey is based on responses from 2,102 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 UK said: “We are delighted to report a more positive picture from the South West this quarter. Looking at the region’s biggest cities, we are seeing appetite for hiring across the board and at all levels. From Bristol and Exeter to Plymouth, applicants are using their strong position to seek premium salaries and positions.”
“Employers are facing real challenges in attracting and securing candidates with the right experience. As demand for candidates rises, particularly among blue chip organisations, we are seeing investment in longer-term approaches to hiring. This can include establishing new schemes for school leavers and A-Level students in addition to existing apprenticeship and graduate programmes. We are even receiving requests to be notified of high quality candidates regardless of whether a position is currently being recruited for as companies are increasingly willing to create positions for those with the right skills. At the same time, employers are also beginning to rely on the concept of ‘teachable fit’ as candidates with a proven track record and experience can adopt new skills and adapt to new roles.”
The national seasonally adjusted Net Employment Outlook has jumped two percentage points to +7% as companies ramp up hiring plans going into the New Year. The upbeat national picture is being fuelled by Britain’s booming business and finance services sector, at +10%, and particularly high tech areas such as cyber security. Recent high profile data breaches such as those at TalkTalk and Sony, have created a surge in demand for cyber security experts. ManpowerGroup has seen a record number of requests received for specialists with IT security expertise in 2015, four times the demand that it saw last year.
Despite the positive national picture in Q1 2016, employers face significant uncertainties later in the year ahead. Mark Cahill, ManpowerGroup UK Managing Director comments: “The introduction of the National Living Wage in April 2016 is set to send shockwaves through the UK jobs market, especially in generally lower paid sectors such as retail, hospitality and social care. Many employers are still working out how much the national living wage will cost them – and how they are going to pay for it – and the picture that will emerge over the coming months may not be all rosy. This is combined with looming uncertainty over the timing and outcome of Britain’s EU referendum. The General Election had the effect of pausing the uptick in employment in April and early May and ManpowerGroup expects Brexit uncertainty to have an even more dramatic impact.”
Promoters of the Northern Powerhouse will be cheered as the boost given to the project in the recent Autumn Statement is marked by a surge in optimism in both the North East and North West, at +9% and +11% respectively. In the rest of the country, the South East (+12%), the East (+9%), London (+9%), Wales (+9%) and the East Midlands (+8%) all stand above the national average. The Outlook in the West Midlands (+6%), Scotland (+5%) and Yorkshire and the Humber (+4%) is in positive territory, while Northern Ireland is the only region to record a negative Outlook for the first quarter of 2016, at -2%.
