As we move rapidly towards the next general election, all eyes are on the ideas from the political parties to deliver good growth, employment, reform government and help lift standards of living. What affect can we see on the Labour Market and employment in 2015?
As the economic recovery continues and the elections loom, 50% of British businesses are planning to take on extra workers this year, but skills shortage could stop jobs being filled.
All regions of the UK stand to benefit, while Scotland has the biggest plans for the job creation. Employers also said they would give workers pay raises this year, though at a “cautious rate” as productivity remains weak and competition tough.
Among firms polled for the employment trends survey 2014, 43% said they were planning pay rises in line with the retail prices index (RPI), at 2%. About 12% said they would hand workers’ pay rises above the RPI measure.
UK workers are finally benefitting from a rise in real wages – where pay growth outstrips inflation – after six years of decline. The report found that more permanent than temporary jobs would be created.
Businesses are concerned that they would not be able to fill some jobs because of a lack of suitably skilled candidates. This, as well as worries over regulation directed at the flexible labour market, were considered the biggest workforce threats to UK competitiveness. It’s a concern that the UK’s growing skills gap is now seen as the number one workforce threat to the long-term health of its economy.
The issue is likely to be debated by politicians in the run-up to the general election in May 2015.
What real changes can you see after the election?
We as a business are discussing matters with our clients to get their thoughts and enable ourselves to be better placed knowing their plans this year. This positions ABPM ahead of the competition knowing who will be recruiting and expanding to advise our candidates of the right career opportunities.
When you consider your next move, call ABPM to discuss how we can assist in your search for your next career move.
Rej Abraham Managing Director