Unemployment at a 42 Year Low and Set to Keep Falling....
Britain’s jobs boom will keep on growing as employers say they plan to carry on hiring, regardless of indications the economy is slowing down.
Economists had feared the UK’s remarkable surge in employment would stutter in the face of weaker GDP growth, but so far firms have defied those worries.
The proportion of companies getting more confident in their hiring and investment decisions outweighed those becoming more gloomy by a margin of 10pc in October’s survey from the Recruitment and Employment Confederation.
Unemployment is already at a 42-year low and looks set to keep falling if employers live up to these recruitment plans.
The REC believes more clarity on Brexit plans would help to reinforce this picture by calming bosses’ fears over the economic situation.
“It is very worrying that for the third month now, more employers feel that economic conditions are getting worse,” said Kevin Green, the REC’s chief executive.
“Although the demand for temporary agency workers is declining, the demand for permanent staff remains strong – which is a positive sign. The jobs market’s unprecedented growth is at a tipping point.
“Clarity around trade, residency and immigration could prevent a rapid decline in the UK’s successful labour market. We’re looking for political leadership.”
The plunge in unemployment has made it increasingly difficult for companies to find the staff they need, particularly as net immigration is slowing.
Firms in the health and social care industries are struggling to recruit, as are businesses in the education and hospitality sectors
One way to try to fill the gap is by raising wages, however there are only limited signs of a sustained rise in incomes.