Majority of UK businesses will create jobs, but employers still not looking to employ public sector
Majority of UK businesses will create jobs, but employers still not looking to employ public sector workers
The Barclays Job Creation Survey 2012 questioned 670 executives of UK businesses of all sizes, the second year the research has been run. The survey reveals the majority of firms plan to create new jobs this year, although many private companies remain uninterested in taking on ex-public sector workers.
In a breakdown of job creation intentions this year:
58% of companies said they planned to create jobs over the coming 12 months, compared with 57% last year.
Large companies with turnover of over £500m were less confident than last year, with 70% planning to create jobs in 2012 versus 85% in 2011.
Small businesses conversely were more confident, with 51% planning to create jobs compared with 41% last year.
Of those companies that plan to create jobs this year 82% plan to create middle management/skilled labour jobs, while 59% plan to create unskilled jobs and 21% will create senior management positions.
When asked whether job creation would generate sales, or sales growth would lead job creation, more than three quarters, 77%, said growth needs to come first although large companies are now much more likely to put investing in jobs before sales growth in 2012 compared with 2011.
Commenting on these findings, David Roust, Head of Recruitment Industry team, Barclays, said: “It is good to see smaller companies in particular more confident around creating new positions than they were last year. The challenge for the recruitment industry however, is to support those looking for work to find the roles that fit their experience and skills. As larger firms appear more confident around investing in jobs in order to grow sales, rather than waiting for sales to increase before hiring people, we may see greater investment within the corporate sector in 2012.”
The independent research also revealed:
When asked whether private sector job creation can compensate for public sector job losses, 71% of businesses believe there will be a shortfall, which has dropped slightly from 76% in 2011.
The vast majority of businesses (88%) believe that Government initiatives to foster job creation had come to nothing to date.
Almost a third of companies would not consider employing ex-public sector workers, with 35% stating that they were & lsquo;not at all interested’ in employing public sector workers that had lost their positions through Government spending cuts, up from 32% in 2011. Another 23% of private sector companies were & lsquo;not very interested’ in employing those that had lost roles in the public sector.
Businesses showed scepticism around how equipped public sector workers that enter the job market would be to take on roles in the private sector. While a third of businesses believe public sector workers will be & lsquo;quite well equipped’, another third believe the those from the public sector are & lsquo;not very well equipped’, and a further 18% feel those coming from the public sector will not be equipped to take on roles in their organisation at all.
David Roust continued: “There is still a disconnect between public sector workers and private sector employers, with a persistent element of mistrust of the former by latter. This is something that needs to be challenged directly if we are to have a fluid employment market place that allows people to move between the public and private sector easily, bringing the best of both worlds to their roles.”