Manpower UK Jobs Market Amazing Levitating Trick
Manpower – UK Jobs Market Amazing Levitating Trick
The UK’s Employment Outlook is at its strongest level since before the recession, according to ManpowerGroup, the world leader in innovative workforce solutions. With an Outlook of 6%, employers across the UK are looking to take on staff in the second quarter of 2013, demonstrating that the jobs market shows no sign of slowing down.
The Manpower Employment Outlook Survey is based on responses from 2,100 UK employers. It asks whether employers intend to hire additional workers or reduce the size of their workforce in the coming economic 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 6%1 indicates sustained optimism in the UK jobs market, building on the first quarter of 2013 when the Outlook was also 6%.
“With around 600,0002 new jobs created in the last year alone, you’d think the UK employment phenomenon must surely be coming to the end of the road, but the good news looks set to continue till at least the summer.” said ManpowerGroup UK Managing Director, Mark Cahill.
“However, if you dig down into the data all is not what it seems in the UK jobs market. Take the best performing sector for example - Business and Finance services, which shows a score of 13%. On face value you’d think we were in the midst of a boom but many of the jobs created here are the direct result of the mis-selling of PPI and Interest Rate Swaps. These scandals have spawned a new industry to deal with the fallout. Indeed ManpowerGroup estimates that up to 20,000 new jobs have already been created by the big banks alone for the sole purpose of servicing PPI claims, and that’s without factoring in the posts created by the various Claims Management Companies.
Cahill continues: “Despite attempts to put a lid on the amount that the banks pay out on PPI, within the last month alone, we have seen big names like Barclays and Lloyds massively raise the amount of money set aside to deal with PPI claims. A whopping £17 billion pounds has already been allocated, and some commentators think that number could rise much further. The consequence of this will not only mean cash in people’s pockets, it will also translate into jobs. We must not be fooled by the figures. These extra jobs are not a sign of a thriving banking sector looking optimistically to future growth – these roles are all about clearing up mistakes from the past.”
In contrast, Cahill argues, rising hiring optimism in sectors like Transport & Communications – up at 12% this quarter - shows many businesses are finding new opportunities for growth in spite of the economic situation. ”Communications companies like Virgin Media are hiring sales staff in an effort to attract new customers and sell new products and services. We’re also seeing that logistics firms are taking on drivers to meet higher demand for home deliveries, fuelled by the growth in e-commerce.”
It’s not only in the private sector that jobs are being created. ManpowerGroup has detected that, following years of belt tightening, there is a renewed interest in public sector hiring. Indeed this survey suggests that public sector hiring is actually set to outpace private sector hiring in the second quarter of 2013. Mark Cahill adds: “We’ve noticed that a number of public sector organisations have begun recruiting again with renewed vigour. Again, don’t be fooled – austerity is still the order of the day – but in their efforts to implement budget cuts there has been a degree of over-firing. In other words, in their zeal to cut budgets, too many people may have been laid off. Now councils and other bodies have realised that if they want to maintain vital public services they are going to need to start recruiting again, but this time a lot more smartly.” So while private sector hiring intentions stand at 6%, public sector hiring intentions have risen to 7%3.
A number of other sectors remain firmly in the doldrums. Construction remains in a “hole” lot of trouble with an Outlook of -11%. Although this represents a marginal improvement on last quarter, the Construction sector has now recorded a negative Outlook every quarter for the last 5 years.
The picture across the UK is mixed. Hiring intentions in Scotland have rebounded after a year of pessimism. Meanwhile south of the border, there’s evidence that the old North-South divide is reemerging. The South East and South West are the most optimistic on 12% and 11%, respectively. London is also up 7% while the East of England is 11%. Meanwhile up North conditions remain tough. The Outlook for the North East is -1% while the Outlook for the North West is -2%. Both regions are down markedly from last quarter. Meanwhile in Yorkshire and Humberside sentiment remains soft on 2%.