“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.”
“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.”
- The rise in net employment intentions is largely driven by private sector growth, which has seen an increase to +11 from –5 in the previous quarter. The net employment balance – an indicator of employment confidence – is +15 for the public sector and +9 for the voluntary sector.
- The net employment balance is particularly strong in healthcare (+40), ICT (+30), and business services (+23). In contrast, net employment intentions remain subdued in hospitality (-6), finance and insurance (+2), and administration and support service activities (+2).
- While overall basic pay award expectations remain at 1% in line with the previous quarter, median basic pay expectations in the private sector have increased to 1.5% from 0% since the previous report. By contrast, median basic pay expectations in the public sector in the 12 months to January 2022 will be 0%, which compares with 1.4% in the voluntary sector.
Full Report Found Here – https://www.cipd.co.uk/about/media/press/210221companies-report-strongest-employment-intentions