Unemployment has dropped in recent months with many firms choosing to take on additional staff for the Christmas rush, particularly in the retail and hospitality sectors. This is not only good news for jobseekers looking to re-enter the workforce, but indicates a significant strengthening of the UK economy as a whole.
According to data released by research firm Markit, which examined results released by over 400 recruitment firms, job vacancies rose at their fastest rate in 15 years during November. Engineering, nursing and alternative medical care roles proved to be the most prolific, with expansions of firms within the manufacturing sector translating into employment growth within the industry.
Yet the report, jointly sponsored by KPMG and the Recruitment and Employment Confederation, also showed that the availability of candidates to fill vacant positions dropped in both the permanent and temporary categories. This, according to KPMG head of business services Bernard Brown, tends to be a factor generally seen at this time of year and so should not cause overdue concern in expanding businesses.
He says; “It may be that people are still worried about job security but it is more likely that we are seeing a return of the traditional winter slowdown in recruitment as staff are more focused on Christmas than careers.
“Six months ago – after almost five years of pain – most employers were wondering just how real the signs of recovery were.
“Business certainly seems to be more confident.”
Although jobseekers are not necessarily embracing the plethora of available roles with gusto, existing staff are reaping the benefits of a more fortuitous business environment. The report also demonstrated the impact of economic improvement upon wage growth, with permanent staff seeing the greatest percentage increases to their pay packet in six years last month.
There was further good news relating to business confidence in a separate report conducted by audit, accounting and business services firm BDO. It found that business confidence rose for the tenth consecutive month in October, resulting in a positive forecast for growth stretching into the first half of 2014.
While this is certainly positive news for UK businesses, however, there remain factors that could stand in the way of positive lasting growth. Peter Hemington, a partner at BDO, cautions that the government must keep issues preventing strong business growth in mind, especially now that economic recovery has begun in earnest.
He says; “The UK clearly has some substantial long term problems in terms of an underperforming education system and a dysfunctional planning regime.
“Only time will tell whether the coalition government’s radical plans for educational reform will work, but at least there is plenty of energy behind implementing these.”
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