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- Nick Elvin
One half of British businesses are planning to expand their workforce in 2015, with jobs projected to be created in all UK regions, and permanent jobs outstripping temporary work, according to a new survey by the CBI and Accenture.
But concerns over skills gaps that could prevent some of those jobs being filled are seen as the biggest workforce threat to UK competitiveness; and worries about new regulation damaging job creation in the UK’s flexible labour market are a close second.
The CBI/Accenture Employment Trends Survey 2014 covers 323 businesses employing a combined total of more than 1.25 million people. The survey found that 50% of firms expect their workforce to grow in number over the next year.
Jobs growth is expected in every region of the UK, with Scotland leading the way. Also, job prospects for young people have improved on last year with many firms planning to recruit graduates and apprentices in 2015.
Additionally, the survey reveals that pay rises are anticipated in 2015, though at a cautious rate, reflecting weak productivity and competitive pressures. The research underlines also the vital role played by the UK’s flexible labour market in underpinning growth and job creation, which the CBI is urging the next parliament to preserve.
Katja Hall, CBI deputy director-general, said: “Businesses are planning to create jobs in every region of the UK next year as the recovery continues, and more and more of those jobs will be permanent. The outlook for young people is also looking brighter as firms look to boost their graduate intake and expand apprenticeships.
“We want to see everyone enjoy the rewards of the economic recovery. Growth should work for everyone, and skills are the key route to ensuring that this happens through improved productivity and pay.
“It’s a concern that the UK’s growing skills gap is now seen as the number one workforce threat to the long-term health of its economy. Companies and the Government need to work together to find ways to develop skills within the workforce and help employees move into higher skilled and better paid jobs.
“Those in regular work through the year saw wages rise this year and this trend will continue in 2015. Overall, for those in regular work, wage increases have broadly kept pace with inflation, although those with more broken employment histories have seen little respite.”
Highlights of the 2014 survey’s findings include:
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50% of firms plan to increase their workforce in 2015; 12% plan to reduce it;
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Jobs for permanent staff are increasing more rapidly than temporary posts, with a balance of +28% (40% plan higher recruitment and 12% lower) of firms planning to raise permanent hires and +16% their temporary workforce (30% higher, 14% lower);
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Low level of skills (63%), followed by the burden of employment regulation (61%) are seen as the greatest workforce threats to UK competitiveness;
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36% of organisations plan to increase graduate intake in the next 12 months; 6% plan to reduce intake;
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Of those businesses planning on investing in digital over the coming year 92% of firms recognise digital literacy and skills as a driver for efficiency;
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43% of firms are planning a pay rise in line with the Retail Price Index (RPI). 12% expect to pay above RPI;
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95% of respondents see the UK’s flexible labour market as either vital or important to the UK economy.
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