Daily NewsView All News
The private sector is creating jobs but employers are likely to remain cautious about hiring in the next six months, according to a new survey by the Confederation of British Industry (CBI) and recruiter Harvey Nash.
The survey, which covered 300 companies that hire around 1.4 million people in the UK, found that 35% of businesses expect their workforce to be larger in 12 months’ time. 15% of private sector employers predict a reduction in headcount.
The outlook for recruitment in science, hi-tech and IT sectors is largely positive with nearly half (48%) of businesses expecting to increase their headcount in the next 12 months, compared to 13% predicting a decline.
Katja Hall, CBI chief policy director said: “The performance of our flexible labour market in generating jobs in a sluggish economy is a mini-miracle. Businesses look set to continue with the positive but cautious approach to hiring that we’ve seen over the past couple of years, and this is echoed in expected pay restraint designed to protect employment.”
A cautious approach to pay remains the norm with the survey showing that 36% of firms plan a pay increase either below RPI or targeted on specific employees while 16% plan a pay freeze.
Overall the hiring picture presented in the report is positive. “Companies are looking for new recruits with advanced technical skills and, in the coming months, candidates well-suited to the knowledge economy, with experience in science and IT, and those with professional backgrounds, will be most in demand,” said Albert Ellis, chief executive of Harvey Nash.