With the economy picking up, nearly two thirds of UK employers are concerned that they won’t be able to find the people with the skills needed to fill their burgeoning job vacancies. A global PwC survey of over 1,300 CEOs in 68 countries reveals that a quarter of UK business leaders plan to increase their headcount by up to 5 per cent in the next 12 months, with a further 20 per cent planning increases of up to 8 per cent and a further one in five planning increases of over 8 per cent. But 64 per cent of UK business leaders are more concerned about the availability of key skills than any of their Western European counterparts, rating it as the biggest business threat to their growth plans. Technology and engineering firms report the most chronic shortage of skilled employees. (more…)

Fresh evidence that the recession is over as the CIPD reports employment intentions are at the highest level for six and half years. However, pay continues to perform well below pre-recession levels, and the HR body warns that with the economy picking up, now is the time for employers to consider both the levels of pay and employment conditions they have to offer; and the reputation and branding of their organisation. Although CIPD’s quarterly Labour Market Outlook finds little evidence that the buoyant jobs market is feeding through into recruitment difficulties for the majority of employers in the short term, in some areas; such as engineering and management/executive there is already a struggle to fill high-skilled vacancies. The CIPD is therefore urging employers in all sectors to start planning ahead to mitigate the risk of widespread skills shortages in the longer term. (more…)

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 latest labour market statistics shows employment has continued to rise, but at a slower rate than seen last month. However, at 67.2 per cent, record-breaking numbers of women are now in work, the highest since records began. The figures published today by the Office for National Statistics (ONS) show the employment rate in the three months to December 2013 rose to 72.1 per cent, lower than the previous three months and with just a small rise in total pay of 1.1 per cent. This slower pace of growth in employment and pay is reflected in the latest CIPD/ SuccessFactors quarterly Labour Market Outlook survey, which reveals that, although recruitment intentions remain positive, the rate of increase has slowed significantly and the vast majority of organisations expect to give pay awards below the current rate of inflation. (more…)