CONFIDENCE among employers in the East Midlands is flying high heading into the second quarter of 2017 according to a recent survey.
The East Midlands is the second most optimistic region in the country, and one of only five regions not to record a falling outlook, according to The ManpowerGroup Employment Outlook Survey.
Carried out by workforce experts The ManpowerGroup, the survey is based on responses from 2,119 UK employers. It asks whether employers intend to hire additional workers or reduce the size of their workforce in the coming quarter. It is the most comprehensive, forward-looking employment survey of its kind and is used as a key economic statistic by both the Bank of England and the UK government.
Jason Greaves, Operations Director at Manpower, said: “While this quarter has seen confidence tumble in London and Scotland, the East Midlands continues to go from strength to strength, maintaining its role as one of the key engines in the UK’s economy. The engineering and manufacturing sectors remain buoyant in the area, so much so that we continue to face an acute skills shortage. Employers are responding by widening their search to find candidates based further afield, who might be willing to commute a little further.
“We are seeing an increase in HR-related job opportunities in the region, particularly in larger organisations where employee relations is becoming increasingly important. Another key trend this quarter is employers preferring permanent hires over temporary. Savvy employers are keen to secure long-term talent in their businesses using temp-to-perm roles. This trend can be seen in a variety of industries from manufacturing to business support services and even warehousing.
Nationally, private sector hiring has dropped to its weakest level since Q1 2014. Employers in six of the nine sectors surveyed reported a falling outlook. The overall Net Employment Outlook, which includes both public and private sector employers, has dropped two points to +5 per cent.
Mark Cahill, ManpowerGroup UK Managing Director, said: “The impending trigger of Article 50 is clearly affecting confidence in the jobs market. The private sector plans to hire at its slowest rate since 2014 (+4 per cent), with only construction, manufacturing and transport and communications planning to hire at previous levels. The employment rate is at its highest level since records began in 1971, but if you lift the bonnet to look at the engine of the economy, job creation has slowed and employers are becoming more cautious. The companies which have powered Britain’s economy through the immediate post-referendum period are easing off the gas.”
All but five regions report falling outlooks for the coming three months compared to the previous quarter.