Jobs growth challenge to skills shortage but wages remain subdued, says CIPD survey

JobCentrePlus300The 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.

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About Ken Hurst

Ken Hurst began his career as a journalist in London over 30 years ago, working on a range of publications before moving on to weekly newspaper production in the newly-independent Zambia of the 1970s. He returned to the UK where his work included spells on newspapers and magazines, before moving to head up Norwich Union’s corporate affairs division. In the 1990s he moved on to freelance, co-own and publish the B2B audio magazine Sound and front the BBC radio Yesterday’s Papers programme. There followed six years as Business Editor at Britain’s biggest selling regional daily newspaper, The Eastern Daily Press, where he led an award-winning team and for whom he still writes a weekly socio/political comment column. Subsequently, he was Group Editorial Director at CBM, responsible for its UK and US magazine output – including The Manufacturer magazine – research-driven industry reports and live events content. Currently he is Contributing Editor at Works Management magazine publisher Findlay Media and Chairman of the consumer publishing house TNT Multimedia Ltd. He is a Fellow of the Royal Society of Arts and of the British Association of Communicators in Business.
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