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United Or Not, The UK’s Jobs Market Is on The Rise
MANPOWER EMPLOYMENT OUTLOOK SURVEY REVEALS A RETURN TO PRE-RECESSION HIRING PLANS
- National Outlook of +8% in Q3 2014, boosted by retail revival
- Despite referendum uncertainty, Scottish hiring intentions at a 7-year high
- Improvement in public sector jobs Outlook outpaces the private sector
The UK’s Employment Outlook is at its strongest level since the downturn, according to ManpowerGroup, the world leader in innovative workforce solutions. With an Outlook of +8%, employers across the UK intend to take on staff in the third quarter of 2014 – and not even the uncertainty facing the future of the United Kingdom is dampening job prospects in Scotland.
The Manpower Employment Outlook Survey is based on responses from 2,101 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 +8%1 indicates that the jobs market is up on the second quarter of 2014 when the Outlook was +7%.
“Consistency has been the byword for the UK’s Employment Outlook over the last eighteen months. While job prospects have been strong, it’s only now that we’re seeing a return to prerecession hiring plans. What’s more, we’re seeing broad-based growth across permanent roles, the self-employed and contractors,” said Mark Cahill, ManpowerGroup UK Managing Director.
Despite the uncertainty surrounding the outcome of the Scottish independence referendum on 18th September, ManpowerGroup’s research suggests this is not deterring businesses north of the border from hiring. With an Outlook of +8%, Scottish hiring intentions are at a seven-year high, following a jump of five points on the last quarter. Cahill continues: “You’d think with a big question mark hanging over Scotland’s future, businesses would be hesitant to take on staff. We’ve seen big names like Standard Life announce plans to relocate in the event of a ‘yes’ vote, but this doesn’t seem to be subduing the spirits of Scottish employers. We should also remember that this is a busy time for Scotland – the Glasgow Commonwealth Games and the Ryder Cup in Gleneagles could be triggering some of the confidence we’re seeing.”
1 Unless otherwise stated, all figures reported are based on seasonally adjusted data.
“Many of these roles will be temporary, but based on our involvement with the London Olympics in 2012, we shouldn’t underestimate the impact that an upturn in attitude can have on the outlook of a region. The Commonwealth Games Organising Committee alone has announced that it will be employing over 1,000 people this summer, and research has shown that each £100 million spent as a result of tourism will help support an extra 1,300 full-time positions in the wider Scottish economy. 70% of all jobs created by the Games are expected to be in distribution and catering, and these short term roles provide a real opportunity for young people to gain the experience required to get a foothold in the jobs market.”
The summer of sport will no doubt benefit the Retail and Leisure sector, with ManpowerGroup also expecting the World Cup in Brazil to have a positive impact on UK jobs. “Preparation for the World Cup has boosted the Employment Outlook in Retail and Leisure to its most positive level since 2007, at +6%. It has recently been reported that Domino’s Pizza is looking to recruit 1,300 people to deliver an extra 6 million pizzas over the course of the World Cup, and with alcohol sales predicted to rise by £20m during the tournament, it’s going to be a very busy season for the leisure industry.”
“In the wider retail sector, we’ve been asked by Morrisons to recruit hundreds of new permanent roles across the country. Elsewhere, Aldi is also looking long-term as it plans to hire an additional 5,000 members of staff by the end of the year to support its expansion across the country. While mergers might normally be associated with job cuts, two of the biggest names on the high street – Dixons and Carphone Warehouse – have announced their proposed tie-up is set to create 1,600- plus new roles. This is all great news for a sector that has been bruised for several years by the downturn.”
It is not just in the private sector that job creation is on the rise. The ManpowerGroup Survey reveals that hiring confidence in the public sector has risen more sharply than in the private sector. The public sector outlook is up six points on last quarter at +8%, just one point off the private sector level. Mark Cahill again: “While it’s been well-publicised that local councils have had to shed staff in recent years, we’re now seeing what appears to be a reversal of this trend. There has also been a shift in the type of applicant that public sector organisations are seeking. Along with more traditional roles, public sector employers are recruiting flexible candidates who can help implement the changes we’ve seen in public service provision.”
Going into the third quarter of 2014, there is optimism across all of the UK’s regions with the exception of Northern Ireland (-5%). It is the only region expecting to shed jobs in the next three months. The South West tops the regional table, improving strongly to +15%, while the East of England isn’t far behind on +12%. The East Midlands (+11%), the South East (+9%) and the West Midlands (+9%) all exceed the national average, while Yorkshire and Humberside is in line with the national picture at +8%. Below the national average, but still showing positive hiring intentions are the North West (+7%), the North East (+6%), Wales (+4%) and London (+1%).
For further information, please contact:
Brunswick – Anita Scott / Nick Cosgrove / Helen Smith 020 7404 5959
Email: [email protected]
Twitter: #MEOSUK
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