The economic impact of unfilled job vacancies on the UK economy may be leading to a staggering annual cost of over £18bn. Research by job site Indeed, claims that falling unemployment and robust job creation is resulting in many businesses finding it a challenge to locate and secure the right employees. This inability to find and recruit the right hire for a role is impacting on both the business itself and the wider economy in two major ways. For the employer, failing to effectively resource a business slows both production and profits, while in the wider economy unearned wages reduce consumer spending power and contribution to economic growth. ‘Empty desks’ in the real estate sector are having the greatest impact on the UK economy, due to high levels of contributed economic value (the goods and services that could be produced if the position were filled).

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We keep saying it but forget all the talk about Gen Y, the UK workforce is actually aging and becoming more diverse. New research from Saga shows that the number of employees over the age of 65 has increased by over a third over the last four years and the numbers of those between 50 and 64 has also increased – by nearly a tenth. The proportion of over 65s within the workforce is up from 3.4 percent to 3.6 percent over the same period but there have also been increases in employment in younger age groups meaning the workforce is more diverse. There are now 1.09 million over 65s still in work and around 8 million in the 50-64 age group. The Saga Monthly Employment report, published in partnership with the Centre for Economics and Business Research, also found that older age groups are now just as economically active as younger demographics

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The CIPD has urged the Chancellor to focus on delivering a “Budget for Productivity” when he delivers his 2014 Budget on 19 March. The employment body has today put forward a package of proposals which call for labour market inclusion and the development of more productive, inclusive, and engaging workplaces. It is calling for a fundamental review of UK skills policy, together with a new focus on the workplace, the nature of jobs for the future, and how skills are being utilised. This, the CIPD argues, is critical if the necessary leap in productivity is to be delivered to boost real wages. A recent CIPD report  found that already weak UK productivity has worsened as a result of a slow-down in job turnover during the recession and an extraordinary run of hiring that has preceded the recent return to growth. (more…)

The Chartered Institiute of Personnel and Development has today released a report analysing the most sustained and severe fall in real wages since at least the Second World War, and warns that the decline will not be reversed until there is a substantial improvement in the UK’s productivity.  The report is accompanied by new survey data showing many employees expect pay rises in 2014 to be below inflation – a repeat of their experience in 2013. ‘Have we seen the end of the pay rise?‘, which is the third in a series of four Megatrends surveys exploring the future of work and the economic challenges which lie ahead, examines the effects of average weekly earnings that are now between 7.8 percent and 10.2 percent lower in real terms than they were five years ago, in January 2009, leading to a sustained squeeze on household finances.

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The latest figures from the Office of National Statistics show that the unemployment has fallen to 7.6 per cent, its lowest rate in more than three years, and the signs are that employers can plan for the future with renewed confidence. In a poll conducted at the recent Chartered Management Institute’s National Annual Conference, 74 per cent of managers said market conditions for their business are currently more conductive for growth than they were last year. Their biggest management challenge in the coming year will be implementing change initiatives, with other priorities being: coordinating business development activities; getting the best performance out of their team; achieving results with fewer resources; internally promoting their department as a value-adding business partner; and managing and bringing through star performers.

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