The start of the recession in 2008 ushered in a time of anxiety for people across the UK. Commercial property workers feared for their jobs, families began counting the pennies rather than spending as freely as they had in more economically stable times and banks came under close scrutiny on a virtually daily basis.
Arguably the most concerned group in society, however, were those who were struggling to find work – as if employment opportunities were thin on the ground during times of economic growth, the recession was bound to make that problem significantly worse.
Fast forward to 2012, and we remain in a period of financial decline. National debt is ever increasing, banks are refusing to lend to many small and medium sized enterprises struggling to break even, and the unemployment issue remains an item of headline news. Worse yet, the announcement of the double dip recession earlier this year has caused an element of panic within many commercial property businesses nationwide.
In a study conducted by the Chartered Institute of Skills and Personnel, a third of businesses have kept on more staff than strictly necessary during a time of recession in order to avoid losing key skills from their workplace. This seems sensible from a business point of view, as by expanding upon the initiative of the workplace by employing people with a variety of skills, new ideas and money making schemes which can earn much needed revenue may be created.
Good news? Yes, so far. However, the study continued to reveal that almost two in three UK employers are considering making cuts within the workforce if the economy has not picked up by a substantial amount in the next 12 months.
The survey questioned 1,000 employees of companies who have defied the economic downturn by taking on additional staff in the past few years. In fact, the latest figures released by the Labour Force Survey have shown that unemployment has once more fallen, having dropped by 65,000 to 2.58 million in the three months leading up to February of this year. However, the Chartered Institute of Personnel and Development, parent of the Chartered Institute of Skills and Personnel, say the study intended to show that the jobs market could change at any time.
CIPD spokesman Gerwyn Davies said; “Recent falls in unemployment suggest that the labour market is on a sound footing, but a closer examination reveals that many employers are holding on to more staff than is required by the current level of demand in order to retain their skills.
“The tenacity with which employers are hanging on to skilled labour is a reflection of the high value they place on it and the damage they fear will be done to their businesses if they are forced to start making more redundancies.”
New unemployment figures will be released today, showing whether or not the market has improved any, as the year went on. However, the question is whether the impact of the Olympics will have skewed figures any, as many retail commercial properties chose to take on extra staff on a short term basis to cope with additional custom over the course of the Games.
Additionally, building contractors, security personnel and stadium staff will also have found work on a temporary basis in the run up and duration of the Games, therefore perhaps creating the illusion that unemployment is not quite as bad as it has seemed in the past. Only time will tell whether the jobs market has truly improved, or if Britain still has a long way to go in terms of mass employment.
Do you believe that the on-going recession may lead to further unemployment if the issue is not resolved soon? Will the figures released on today truly portray the employment situation in the UK in your opinion?
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