The manufacturing sector’s dilemma over skills shortages is facing a further twist with the CIPD’s new labour market survey showing that for the sixth quarter in a row, employers expect jobs growth – meaning more openings for job seekers but more competition among employers for the right candidates.
The report shows that the net employment balance – which measures the difference between the proportion of employers who expect to increase staffing levels and the proportion who intend to reduce staffing levels – stands at +14, the highest figure since the recession in 2008.
However, employers do not expect wage growth to accelerate significantly, with the average anticipated settlement for basic pay being unchanged at 1.7%.
CIPD chief economist Mark Beatson said there should see further jobs growth over the summer and autumn and similar prospects for 2013. “The challenge for the increasing proportion of employers looking to hire will lie in finding the right talent to fill their vacancies,” he continued, adding that turnover still remained low, perhaps because many employees were reluctant to leave the security of their current role for fear that the market dips again. “So employers could find fewer ideal candidates around than they might have expected,” Beatson concluded.
Also commenting, James Reid from survey partner SuccessFactors, said: “Today’s highly competitive economy has left businesses not only battling for custom and market share, but also for the acquisition and retention of talent. But an important balancing act must take place when it comes to employing new talent versus the training and development of the existing workforce.”
This material is protected by copyright Ken Hurst 2013.