EMPLOYEE DEMAND SPIKES IN WALES AS HIRING CONFIDENCE MORE THAN DOUBLES
MANPOWERGROUP EMPLOYMENT OUTLOOK SURVEY REVEALS THE REGION’S HIRING CONFIDENCE CONTINUES ITS POSITIVE TRAJECTORY
- Outlook of +7% for the region, more than double the previous quarter (+3%)
- Demand from contact centres and administrative support agencies
- Employers seek experienced candidates, at the expense of recent graduates
12 DECEMBER 2017: Contrary to the national Outlook, which is at a five-year low of 4%, employers in Wales have reported a surge in hiring confidence, according to ManpowerGroup, the world’s workforce experts.
The Manpower Employment Outlook Survey is based on responses from 2,102 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.
Simon Edwards, Operations Director for Manpower UK, said: “Wales is beginning 2018 with its strongest Outlook in over a year. Contact centres and administrative support agencies continue be key employers, particularly in the outskirts of Cardiff and Swansea. There is also demand across the country for semi-skilled candidates in engineering and the NHS.”
“The type of candidate that employers are looking for is notable – despite perhaps not having the same paper qualifications, we’re increasingly finding that employers choose candidates with existing job experience over newer graduates who are just seeking to embark on their careers. This effect has been further accentuated by an increase in the number of semi-retired job seekers, as well as those more broadly that are seeking part-time employment.”
Nationally, employers have recorded a slump in optimism with a national Outlook of +4%, the lowest level since 2012. Downbeat hiring intentions in sectors such as Finance and Business Services and the Public Sector have both weighed heavily on the national picture this quarter.
James Hick, Managing Director for ManpowerGroup Solutions: “The national Outlook hasn’t dipped below +5% since the final quarter of 2012, yet this quarter we are seeing the worrying double whammy of a fall in confidence nationwide and flatlining hiring in London. This makes for a pretty bleak midwinter considering it comes at a time when Brexit talks are on a knife-edge. It will no doubt prompt fears that our high-flying jobs market might be cooling off.”
However, Brexit fears have actually boosted the transport sector by 10 points, to +12%, as employers “stockpile” permanent employees to avoid the pressure of a Brexit exodus on an aging workforce.
Hick continues: “The Transport sector is a key outlier in the dreary national picture. With online purchases accounting for £2 in every £5 of spending over the festive period, there is an immediate pressing need for professional drivers. This quarter the driver shortage is more acute than ever, thanks to a shrinking pool of talent. Combined with the skyrocketing demand, it is driving up pay significantly – many companies are having to pay premiums of up to 20% on their standard rates for drivers. With so many EU workers employed in driving and logistics roles, employers are already mindful of the cliff edge scenario of exiting EU workers that may accompany Brexit. We are therefore seeing companies in the transport sector “stockpiling” drivers by signing them up for permanent contracts ahead of May 2019.”
Elsewhere in the regions, the concentration of Transport and Haulage jobs in the “golden triangle” of Northampton, Milton Keynes and Daventry has helped propel the West Midlands and East Midlands to the top of the regional table with Outlooks of +12% and +11% respectively. This positivity radiates to Yorkshire and the Humber, which has built on a positive 2017 and is up one point to +8%. Looking further north, the North East and North West have seen contrasting fortunes this quarter. The North East is up four points to +6%, its most optimistic level since Q1, 2017. However, the North West is down to +3%, a two-point quarterly fall.
Hiring pessimism is particularly acute in London, where the Outlook has fallen three percentage points to 0%, and the wider South East, where the Outlook is just +3%. Conversely, and four-point quarterly rise. Despite a one point fall from last quarter, Scotland is slightly above the national outlook on +5%. After a strong end to 2017, the outlook in Northern Ireland has fallen three points so the region will begin 2018 in line with the national average of +4%.
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