Big Business Hiring Set to Hit 10 Year High
MANPOWER EMPLOYMENT OUTLOOK SURVEY REVEALS JOBS OPTIMISM AMONG UK’S BIGGEST FIRMS AT HIGHEST LEVEL SINCE 2005
- Utilities the most optimistic sector in early 2015
- Hiring plans in Construction jump to pre-recession levels
- North East the most upbeat region, with highest confidence since 2007
Britain’s biggest companies are set to lead the job creation charge in early 2015, according to ManpowerGroup, the world leader in innovative workforce solutions. Overall employment prospects across the UK as a whole now stand at +7%, one point higher than the national Outlook at the end of 2014.
The Manpower Employment Outlook Survey is based on responses from 2,103 UK employers. It asks whether employers intend to hire additional workers or reduce the size of their workforce in the coming quarter. It is the most comprehensive, forward-looking employment survey of its kind and is used as a key economic statistic by both the Bank of England and the UK government. The national Seasonally Adjusted Net Employment Outlook of +7%1 indicates that 2015 will begin with a more optimistic jobs market than the fourth quarter of 2014, when the Outlook was +6%. “2014 was a bumper year for jobseekers, with the highest level of job creation in 40 years. 2015 will begin with employers in an even more confident position and we are optimistic about job prospects for the rest of the year. The main catalyst is big business hiring: with an Outlook of +21%, more of the UK’s largest employers are planning to take on staff than at any point in the last decade. Many big businesses built up large cash reserves in the downturn. Now that confidence is returning they have money to invest in infrastructure and growing their workforces.” says Mark Cahill, ManpowerGroup UK Managing Director.
“The run up to Christmas has seen some of the UK’s biggest and best-known companies taking on staff in their thousands as they prepare for the seasonal rush. For example, Royal Mail has recruited 19,000 extra workers to deliver the nation’s Christmas gifts. And it is not just about creating new jobs – companies are increasingly offering extra incentives to tackle the shortages of skilled staff. For example Hermes, the parcel courier service, is using enhanced benefits to attract and retain the large number of drivers that they require for the peak season and into the new year,” continues Cahill.
The most optimistic sector forecast this quarter is Utilities, which increased four points to +16%, its most positive Outlook in two years. Cahill comments: “Energy companies are investing significantly in the UK, which is set to have a positive effect on the jobs market next year. Britain’s next nuclear power station at Hinkley Point has now received the green light from Brussels, and EDF Energy estimates that the plant could create 25,000 new employment opportunities. This is great news for the South West, which goes into the next quarter with an Outlook of +15%, more than twice the national average.”
1 Unless otherwise stated, all figures reported are based on seasonally adjusted data.
“It’s not just infrastructure investment that has boosted optimism in this sector. New entrants in the domestic energy supply market, like Extra Energy, are recruiting several hundred customer service roles in Birmingham. And the sector’s buoyant jobs Outlook looks set to continue well into 2015 – with the widespread introduction of smart metering over the next couple of years we’re likely to see high demand for engineers, technicians, auditors and fitters.”
Utilities is not the only sector entering 2015 on a high. After a prolonged spell in the doldrums, 2015 could be Construction’s year. Mark Cahill again: “At +9%, employment prospects in the Construction sector now stand at their strongest level since 2007, up nine points on the previous quarter. In London we have seen the extraordinary statistic that one in three of the largest construction companies is having to turn down bidding opportunities due to a shortage of skilled labour. Construction firms need to think more creatively about how they deal with the skills shortage. Many of the large construction firms are taking on people at an earlier stage in their career, and investing in their development through training and apprenticeship programmes to ensure they’re equipped with the know-how for the job.”
North East England employers report the brightest Outlook among the regions, at +16%, its best showing for seven years. Cahill continues: “The growth in customer service roles is a significant driver of optimism in the North East. We’ve been recruiting for thousands of people across several contact centres – a huge source of employment in the region – and demand continues to outstrip the supply of candidates.”
Apart from the marked positive increases in the North East and South West, there is a mixed regional picture across the UK. The Wales forecast (+4%) rose by three points, while the Scottish Outlook has continued to fall from +8% in Q3 2014 to +2% this quarter. Northern Ireland is the only region in negative territory, with its Outlook falling back down to -4% after a surprise leap into positive numbers last quarter.
For further information, please contact:
Brunswick – Anita Scott / Nick Cosgrove / Helen Smith 020 7404 5959
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NOTES TO EDITORS
A ‘Net Employment Outlook’ is calculated by subtracting those employers who plan to reduce staffing levels from those who plan to hire staff. A positive result indicates that more employers plan to increase rather than decrease staffing levels; a negative result reflects the opposite.
Commentary and full details on every sector and region can be found in the survey report at manpower.co.uk/meos, or by calling the Press Office on 0207 404 5959/ [email protected]
For international comparisons and visual library with graphs, visit manpowergroup.com
Commentary is based on seasonally adjusted data where available. Full survey results for each of the 42 countries and territories included in this quarter’s survey, plus regional and global comparisons, can be found in the ManpowerGroup Press Room at www.manpowergroup.com/meos. In addition, all tables and graphs from the full report are available to be downloaded for use in publication or broadcast from the ManpowerGroup Web site at: http://www.manpowergroup.com/press/meos.cfm
Note that in Quarter 2 2008, the Survey adopted the TRAMO-SEATS model for seasonal adjustment of data. As a result, you may notice some seasonally adjusted data points change slightly from previous reports. This model is recommended by the Eurostat department of the European Union and the European Central Bank, and is widely used internationally.
About the Survey
The world leader in innovative workforce solutions, ManpowerGroup releases the Manpower Employment Outlook Survey quarterly to measure employers’ intentions to increase or decrease the number of employees in their workforce during the next quarter. It is the longest running, most extensive, forward-looking employment survey in the world, polling nearly 66,000 employers in 42 countries and territories. The survey serves as a bellwether of labour market trends and activities and is regularly used to inform the Bank of England’s Inflation Reports, as well as a regular data source for the European Commission, informing its EU Employment Situation and Social Outlook report the Monthly Monitor. ManpowerGroup’s independent survey data is also sourced by financial analysts and economists around the world to help determine where labour markets are headed.
About ManpowerGroup
ManpowerGroup™ (NYSE: MAN) has been the world’s workforce expert, creating innovative workforce solutions, for more than 65 years. As workforce experts, we connect more than 600,000 men and women to meaningful work across a wide range of skills and industries every day. Through our ManpowerGroup family of brands – Manpower®, Experis™, Right Management® and ManpowerGroup™ Solutions – we help more than 400,000 clients in 80 countries and territories address their critical talent needs, providing comprehensive solutions to resource, manage and develop talent. In 2014, ManpowerGroup was named one of the World’s Most Ethical Companies for the fourth consecutive year and one of Fortune’s Most Admired Companies, confirming our position as the most trusted and admired brand in the industry. See how ManpowerGroup makes powering the world of work humanly possible: www.manpowergroup.com.
About Manpower UK
Manpower is the global leader in contingent and permanent recruitment workforce solutions. It is part of ManpowerGroup, the world leader in innovative workforce solutions, which creates and delivers high-impact solutions that enable clients to achieve their business goals and enhance their competitiveness. With a network of 300 offices in cities across the country, Manpower has provided organisations in the UK with a continuum of staffing solutions from the incidental to the strategic for 55 years, working with businesses such as BT, IBM, Royal Mail and Xerox to help them win.
In the Human Age, where talent has replaced access to capital as the key competitive differentiator, Manpower UK leverages its trusted brand to develop a deep talent pool, providing clients with access to the people they need, fast. Manpower UK creates powerful connections between organisations and the talent they need to enhance their competitiveness and unleash their workforce potential. By creating these powerful connections, we help everybody achieve more than they imagined, and power the world of work. For more information, see www.manpower.co.uk
