Recruitment is at its highest level since the recession, according to the latest news from the Chartered Institute for Personnel Development – the CIPD.
The CIPD have reported that more employers are looking to hire staff as employment confidence has reached its highest level since 2008, according to the CIPD’s latest Labour Market Outlook (LMO) survey.
CIPD survey results show that the jobs market has continued to grow for six consecutive quarters in a row, signalling good news for jobseekers and government ministers alike.
The net employment balance — the difference between the proportion of employers who expect to increase and reduce staff numbers — has risen from +9 in the spring, to +14 in the latest LMO, published in association with Success Factors.
The private sector continues to show positive growth in hiring activity after reaching a record high in June this year, up from +21 to +26 this summer. For the first time in this year, the public sector has seen a slight improvement at -25 compared to -31 reported in May, but the balance remains negative as employers expect further job cuts.
“This is welcome news for job seekers and should hopefully reflect a degree of optimism about growth prospects for 2013,” said Mark Beatson, chief economist at the CIPD.
“The challenge for the increasing proportion of employers looking to hire will lie in finding the right talent to fill their vacancies.”
Turnover has declined steadily across most sectors since the 2008 financial crisis, according to this year’s CIPD Resourcing and Talent Planning survey, released in partnership with Hays Resourcing, and competition to recruit remains high. Employers are responding by investing in more flexible and innovative ways to recruit and retain employees.
Despite increased openings in the labour market, wage growth is not expected to accelerate significantly and pay remains below the rate of inflation.
Among the 1,034 senior HR professionals planning a pay review this year, the average settlement for basic pay (excluding bonuses) is anticipated to be unchanged from the previous quarter, at 1.7 per cent.
“Employers feel they do not need to raise pay to meet recruitment goals and, with turnover low, retention is unlikely to be a pressing issue for most organisations,” said Beatson.
“However, both these factors could turn as the job market improves and employers need to be prepared to adjust their workforce planning, development and reward practices in response.”
Source: CIPD