The latest CIPD/Adecco Labour Market Outlook shows that the survey’s net employment intentions figure, which measures the difference between the proportion of employers expecting to add jobs and those planning to cut positions, rose to +11 this quarter - its highest in a year. This compares to –1 in the previous quarter.
The sectors that are indicating strong hiring intentions include:
- Healthcare (80%)
- Finance and insurance (65%)
- Education (65%)
- Information and communications (67%)
The report also suggests that the share of organisations planning to make redundancies in the first quarter fell from 30% to 20%.
Gerwyn Davies, Senior Labour Market Adviser at the CIPD, said, “These are the first signs of positive employment prospects that we've seen in a year. Our findings suggest that unemployment may be close to peak and may even undershoot official forecasts, especially given the reported fall in the supply of overseas workers.
“However, it is far too soon to rule out further significant private sector redundancies later in the year if the government does not extend the furlough scheme to the end of June or if the economy suffers any additional unexpected shocks. It would be hugely counterproductive if the government’s financial support faltered while some of the biggest sectors of the UK economy are still in survival mode.”
Alex Fleming, Region President of Northern Europe, Adecco Workforce Solutions, added, “The start of 2021 has been challenging, with the UK entering into its third lockdown. It is still positive to see some signs of labour market recovery, with a clear rise in net employment intentions. The furlough scheme and redeployment have enabled many organisations to avoid redundancies during the pandemic, and as we continue to transition into the new era of work, government support will remain a key factor in helping to minimise any further jobs fallout.
“Investing in reskilling and upskilling will also remain an important tactic in future proofing the workforce. Even with a Brexit deal and the vaccine rollout underway, there is uncertainty, particularly among the younger generation, when it comes to remaining in the UK for work. Therefore, companies that invest in career development, enhancing the skillsets of employees and maintaining a positive workplace culture will help to strengthen their talent attraction and retention strategies during what remains such an unprecedented time.”
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