Labour Market Outlook in 90 seconds — Autumn 2018

Labour Market Outlook in 90 seconds — Autumn 2018


The CIPD and The Adecco Group Labour Market
Outlook provides data and analysis on employers’ recruitment, redundancy and pay intentions
in the UK. Here are this quarter’s main findings. The share of firms looking to increase staff
remains high while redundancy intentions relax further still. Strong labour demand and close to full employment
is heaping pressure on recruitment, as 44% of employers report greater difficulty in
hiring over the past year. Hard-to-fill vacancies are affecting 70% of
employers, up again from 66 last quarter. Retaining staff has also become tougher, with
34% feeling increased strain. Around half of those with hiring or retention
challenges have raised salaries in response. But the median level of basic pay award increases
is held at 2%. 90% of employers say the current migration
proposals will not, or only to some degree, meet their needs for low or medium-skilled
labour. A fall over the past year in the number of
EU and non-EU nationals in employment is a further blow to labour supply. Labour shortages are leading to higher workloads
for existing staff, problems meeting customer service objectives and loss of business and
orders in many organisations. The impact on productivity growth, along with uncertainty
over Brexit is having a dampening effect on wage rises. The overall picture of tightening labour supply
underlines the need for workforce planning and high performance working. Employers should
also address staff concerns about job security and keep them informed on Brexit developments. Government must continue work closely with
employers in evolving a migration policy that will allow access to skills at all levels.

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