November 2, 2018
Skills and new businesses drive decade of recovery for UK cities
Improving skills levels and new business formation have been the key long-term drivers of growth for UK cities since the financial crisis, according to the latest Demos-PwC Good Growth for Cities 2018 index that ranks cities on a combination of economic performance and quality of life. The latest Index analyses a decade of economic and social data to determine what long-term factors drive Good Growth. PwC analysis shows that the average city in our index has improved its good growth score significantly over 10 years from 2005-7 to 2015-17, and has now more than recovered from the recession and downturn triggered by the global financial crisis.
As employment levels rise, employers are facing stronger competition to attract and retain staff. Now the latest research suggests there is an escalation in the ‘war for talent’, as nine out of 10 new hires admit they would leave a job that fails to meet expectations within a month. According to research commissioned by Robert Half of 9,000 candidates in 11 countries across four continents, nearly half (47 percent) admit they decide whether they would or wouldn’t accept a position straight after the initial meeting. Highlighting that first impressions count, a further one fifth (20 percent) know if they are interested after the first communication (call/email), while 17 percent typically decide within the first five minutes of the interview. Less than one in 10 (9 percent) wait until they have completed subsequent interviews to decide and merely 7 percent decide during contractual negotiations. Even once candidates have accepted a role, 91 percent admit they would consider leaving a job within their first month and 93 percent during their probation period.
There have already been warnings from workplace experts that the legal profession isn’t one to choose for those starting out on their careers as it’s ripe for automation, and a new survey claims these changes are happening fast. According to a survey of over a 100 law firms by CBRE, nearly half (48 percent) are already utilising Artificial Intelligence (AI) and a further 41 percent have imminent plans to do so. Of the firms already employing AI, 63 percent of firms are using it for legal document generation and review, and the same proportion for e-discovery. Due diligence (47 percent) and research (42 percent) were also common applications, along with compliance and administrative legal support (each 32 percent). The use of AI will affect employment levels, with the greatest impact predicted at the junior and support levels, where nearly half (45 percent) of firms believing that there will be a reduction in headcount. In contrast, only 7 percent of firms believe that senior headcount levels will be reduced.
Most private sector workers are still not pushing for pay rises, despite falling real wages and low unemployment, according to the latest quarterly CIPD/The Adecco Group Labour Market Outlook survey. Only a quarter (24 percent) of employers in the private sector say they are under some or significant pressure to raise wages from the majority of their workforce, while almost four in ten private sector firms (38 percent) say they face no pressure at all to raise wages. The most common reason given by private sector employers (23 percent) for the lack of pressure to raise wages is a recognition among workers that the business cannot afford more generous pay increases, underlining the productivity challenge many firms face. The survey of more than 2,000 UK employers shows a slightly higher proportion of private sector employers (36 percent) cite either some or significant pay pressure to raise wages for certain roles, particularly among high and middle-skilled jobs.
