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…)

You might regard the concept of employee engagement as just a new way to describe industrial relations, but there is a growing body of research that UK employers need to do more to keep their employees on side. According to the latest missive, low employee engagement and lagging productivity is the greatest employment challenge facing UK business in 2013. Global research by Right Management  found that this was the key concern for one in three (31 per cent ) employers compared to a global average of just one in five (21 per cent ) HR professionals, suggesting that after years of economic uncertainty and doing ‘more with less’, the UK workforce has reached a productivity impasse. (more…)

There is mixed news on the recruitment front, with the latest Recruitment and Employment Confederation (REC) and KPMG report on jobs hinting a positive turn, with permanent placements accelerating, the rate of demand for permanent staff remaining solid and average starting salaries continuing to rise. However, according to a new global report, employers are urged to be cautious about who they hire, because more than half of employers in each of the ten largest world economies say that a bad hire has negatively impacted their business, pointing to a significant loss in revenue or productivity or challenges with employee morale and client relations.

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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…)

British employees contribute an extra £142 billion a year to their employers, by working on average, an unpaid ten extra hours per week. According to a study by Travelodge of 2,000 workers across the UK, nearly three quarters (72 per cent) routinely do the extra hours, which translates into an average saving of £6,635 for employers. So great is the trend, that one in ten workers cram a whole extra week of unpaid work on top of their normal working schedule so that they can manage their workload, and a third of Britons now work an additional 16 hours a week for free than they did prior to the start of the recession. (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…)