A ‘challenging autumn’ for pay and jobs predicted
Latest data has revealed that as many as one in three businesses are expecting to cut jobs in the third quarter of the year.
The CIPD and the Adecco Group surveyed more than 2,000 employers and also found that, unsurprisingly, employers across all sectors plan to keep a tight rein on pay increases over the next 12 months.
Overall, hiring intentions have actually increased, with nearly half of employers looking to take on new workers in the next three months. However, this confidence still remains below levels seen in previous years, with employment confidence having fallen in all three sectors of the economy (private, public and voluntary).
Gerwyn Davies, Senior Labour Market Adviser at the CIPD, the professional body for HR and people development, commented on the findings, “This is the weakest set of data we’ve seen for several years. Until now, redundancies have been low – no doubt due to the Job Retention Scheme – but we expect to see more redundancies come through this autumn, especially in the private sector once the scheme closes.
“Hiring confidence is rising tentatively, but this probably won’t be enough to offset the rise in redundancies and the number of new graduates and school leavers entering the labour market over the next few months. As a result, this looks set to be a sombre autumn for jobs.”
Alex Fleming, Country Head and President of Staffing and Solutions, the Adecco Group UK and Ireland, added, “This latest report shows a mixed picture with regards to the status of the current labour market.
“We’re also seeing more candidates applying for high skilled roles, which aligns with the trend of people sourcing alternate forms of education in order to upskill and expand their knowledge, during this time of uncertainty.
“As organisations continue transitioning into the new era of work, there will be ongoing shifts in working patterns not only for employees but also for those who are just starting out in their career. Therefore, businesses must demonstrate resilience and adopt new approaches to closing the skills gap by investing in upskilling and reskilling workforces. Creating a positive workplace culture is also integral to maintaining focus, engagement and motivation among existing employees.”
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