It will now be more than four years before the UK restores the employment rate of 2008 – and jobs recovery could take far longer. According to a new analysis from independent think tank the Resolution Foundation, it is now all but certain that the current jobs recovery will take longer than that following either the 1980s or 1990s recessions. The new findings are based on calculations of the UK ‘jobs gap’, the number of jobs the UK needs to create in order to restore the 2008 employment rate. The tough figures are explained partly by the UK’s ageing workforce, as a third of the current jobs gap is down to the growing share of the workforce aged over 64, which is growing twice as fast as the population aged 16-64. More →

Employment growth is set to continue in the second quarter of this year, but the jobs market remains a ‘battleground’, particularly for low-skilled workers. According to the Spring 2013 Chartered Institute of Personnel and Development (CIPD)/Success Factors Labour Market Outlook (LMO), the net employment balance – which measures the difference between the proportion of employers who expect to increase staffing levels and those who intend to reduce staffing levels, has increased to +9 from +5 for the previous quarter, the fifth consecutive quarter of projected growth. However, the median number of applicants employers receive for medium-skilled roles is 29, highly-skilled vacancies typically receive 10 applicants and pay rates continue to be squeezed.

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The current economic downturn differs from previous recessions in that unemployment rates haven’t been quite as devastating, with employers opting to freeze pay rates and offer flexible working and reduced hours in order to retain staff. But according to a white paper published today this has led to an important new phenomenon – underemployment. In the latest issue of the National Institute Economic Review, economists David Bell and David Blanchflower of the University of Stirling and Dartmouth College describe workers who are underemployed when they are willing to supply more hours of work than their employers are prepared to offer. More →

Employers from the private sector intend to hire new staff in the coming months, despite UK businesses not anticipating economic growth in the next two quarters. According to the latest Business Trends report by accountants and business advisers BDO LLP UK businesses’ hiring intentions over the next two quarters, reached 96.0 in March, the highest since August 2011. Peter Hemington, Partner, BDO LLP, commented: “It is encouraging to see improvement in UK businesses’ hiring intentions, particularly in light of the imminent public sector payroll cuts which will add pressure to the unemployment rate.” More →

More positive signs on the jobs front today with the news that despite continuing to face a challenging economic climate, the majority of employers are still planning to increase or maintain their permanent staff over the next three months. This is according to the Recruitment and Employment Confederation’s (REC) latest JobsOutlook survey. REC director of policy Tom Hadley said: “Our latest data shows the majority of employers are planning to increase or maintain their permanent headcount over the next quarter which suggests that the jobs market will continue to outperform the rest of the economy in the short term. Although the ONS reported a rise in unemployment last week, it is important to emphasise that the employment figures were also up.” More →