UK employers' hiring confidence continues: ‘optimistic and stable'
- Prospect of wage inflation grows
Manpower Employment Outlook Survey Q2 2005
UK employers are expressing continued optimism about their hiring intentions, with a Net Employment Outlook ¹ of +15%, according to the latest Manpower Employment Outlook Survey for Q2 2005. When seasonal variations are removed from the data, the outlook decreases to +12%². Optimism amongst employers in the Construction sector is the highest of all sectors, with Transport and Communications employers following close behind. However, continued pressure on finding the right staff is leading to the prospect of increased wage inflation.
The results from the Manpower Employment Outlook Survey show that the overall outlook of +15% is broadly in line with the 10 year average of +16%.
Mark Cahill, managing director at Manpower, says: "The good cheer with which many employers welcomed in the New Year looks set to continue. The picture is very much one of stability. The strong labour market indicates that employees are happy to move jobs whilst employers are happy to replace them. However, there is a prospect of growing wage inflation as the labour market tightens. In this situation, it's imperative for employers to carefully consider their recruitment and retention strategies.
"As you would expect in the run-up to a possible general election, the figures show a positive and very stable labour market – possibly the most stable recruitment picture we've seen in recent years. "
The survey results show that 76% of employers plan to maintain their current staffing levels - the highest figure since 2003. Adds Cahill: "London is particularly stable with 89% of employers predicting no change to their workforce. Although this figure is high, it is positive in that we are still seeing movement within the employment market, with employees moving between companies, maximising the opportunity to experience new working environments and develop new skills."
The Manpower Employment Outlook Survey measures employer hiring intentions for the quarter ahead: April to June 2005. 2,100 UK employers were surveyed in the UK, and over 40,000 employers in 21 countries and territories globally.
Continues Cahill: "The results from the Construction and Transport & Communications sectors are notably positive. Confidence amongst employers in the Finance and Business services sector is still positive, though appears to be easing with companies reporting their least optimistic second quarter results for five years."
Across the UK, eight of the nine industry sectors surveyed by Manpower are planning to take on staff next quarter. Employers in Construction at +22% (up five percentage points year on year); Transport and Communications at +18% (up 16 percentage points year on year); Community and Social at +16% (down four percentage points year on year), all reported figures above the national average. The Utilities sector is the only sector to expect cutbacks, with a Net Employment Outlook of -3% - a decline of 14 percentage points over the last year.
Employers in all twelve regions surveyed intend to take on more staff in the quarter ahead. Employers in Scotland are the most optimistic, with +29% looking to expand their workforce – an increase of five percentage points over the year. Conversely, employers in East Anglia, London and the South West are the least optimistic reporting Net Employment Outlooks below the national average.
Of the 11 European countries surveyed, employers in all but Germany (-1%) and the Netherlands (-2%) recorded positive hiring intentions. The strongest hiring intentions in Europe are reported in Norway (+19%), Ireland (+15%) and UK (+15%), while hiring is expected to be less robust in Italy (+3%), France (+2%) and Austria (+2%).
Looking at the results from a global level, 19 of the 21 countries and territories surveyed by Manpower anticipate positive Net Employment Outlooks for the three months ahead. Employers in Japan (+35%), Taiwan (+35%), China (+30%) and New Zealand (+30%) report the most buoyant forecasts. Employers in 11 of the 19 countries expect more hiring compared to this time last year.
ENDS
NOTES TO EDITORS
¹A ‘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. [% increase (19%) - % decrease (4%) = 15%]
²Seasonally adjusted figures are those that have been modified to take into account variations in figures that can occur due to the seasons, i.e. Spring, Summer, Autumn and Winter.
For international comparisons and visual library with graphs, visit http://www.manpower.com.
About the Survey
The Manpower Employment Outlook Survey is conducted quarterly to measure employers' intentions to increase or decrease the number of employees in their workforce during the next quarter. It is the only forward-looking survey of its kind, unparalleled in its size, scope, longevity and area of focus. The Survey has been running for more than 40 years and is one of the most trusted surveys of employment activity in the world. The Manpower Employment Outlook Survey is based on interviews with more than 40,000 public and private employers worldwide and is considered a highly respected economic indicator.
The Manpower Employment Outlook Survey is currently available for 21 countries and territories: Australia, Austria, Belgium, Canada, China, France, Germany, Hong Kong, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Singapore, Spain, Sweden, Taiwan, the United Kingdom and the United States. The program began in the United States and Canada in 1962, and the United Kingdom was added in 1966. Mexico and Ireland launched the survey in 2002, and 13 additional countries were added to the program in 2003. New Zealand joined the program in 2004 and China and Taiwan were added in 2005. For more information, visit the Manpower Inc. Web site at www.manpower.com and enter the Press Room.
About Manpower
Manpower is the UK's leading workforce management company, specialising in permanent and temporary recruitment, HR services, managed services, outsourcing and HR consultancy.
Manpower has been established in the UK since 1956 and today works with organisations in both the public and private sector. Manpower's UK-wide network of 300 offices allows the company to meet the needs of local and national customers. This includes numerous small and medium sized enterprises, as well as larger organisations such as BMW, BT, Heinz, Hertfordshire County Council, IBM, National Health Service, New Deal South Wales, Royal Mail and Xerox.
The focus of Manpower's work is on raising productivity through improved quality, efficiency and cost-reduction, enabling customers to concentrate on their core business.
Manpower has a highly skilled workforce of 100,000 temporary employees who stay loyal to the company (and its customers) thanks to best in class employment benefits. These include a contract of employment and a free e-learning tool offering staff over 1,000 courses in a diverse range of subjects, keeping Manpower's workforce up to date with today's ever-changing working environment.
See www.manpower.co.uk
