When George Osborne was about to disclose his 2013-14 budget, all eyes were fixed; waiting to find out what would be this year’s gift to the UK employment market. It was indeed a moment of joy for the masses of the country when George Osborne announced “600,000 more jobs expected this year than last, six jobs being created in the private sector for every one lost in the public sector” (Reference). Great news for the UK, which will surely have more people at work this year than ever before.
In addition to this, various measures have been taken to make the employers pay better salaries and allowances to the employees and stimulate more employment, as a result. George Osborne announced a notable increase in the personal allowance from the year 2014, which is now increased to £10,000. He also announced a new employment allowance for reducing the burden of National Insurance on employers hiring new workers and staff.
After receiving a great deal of new employment generation benefits, the employers are keen on increasing and maintaining permanent staffs for the next 3 months, while focusing on coping with the ever-persistent challenging economic conditions.
REC director of policy Tom Hadley said: “Our latest data shows the majority of employers are planning to increase or maintain their permanent headcount over the next quarter which suggests that the jobs market will continue to outperform the rest of the economy in the short term. Although the ONS reported a rise in unemployment last week, it is important to emphasise that the employment figures were also up.” (Reference).
Until now, only the small business organisations were making an attempt to multiply their workforce. However, with the announcement of the Chancellors budget, medium-scale as well as larger companies will also aim to benefit from the new employment policies to boost their businesses.
These responses and improvements are not just on paper alone. The sales and the hospitality sector, which have been hit hard by the recession, have experienced a rise in the demand of new staff, thereby stimulating the employment market. Both the permanent and temporary staff placements recorded an increase in the last month. Though the growth graph is rising at a slow pace, the recruitment agencies predict over 50% of the companies will increase the permanent headcount by the end of the year, and more than 35% of employers will enhance their agency worker requirement. This would ensure a wonderful start to the overall stabilisation of the current domestic and global economies, thereby leading to better growth in future.
As a part of the new recruitment plan, a good number of employers plan to increase the salaries of both permanent as well as temporary contractual staff at moderate rates. According to the recruitment agencies, the rise in the pay grade of the temporary staff has been the highest ever in the past 12-14 months. Although this sounds quite encouraging, even better days are still in the pipeline.
Where on one hand, new economic policies suggesting a possible increase in the employment prospects and the recruitment agencies are supporting the fact, the changes in the global economy and economic slowdown experienced by various developing nations like BRIC (Brazil, Russia, India and China) might make these predictions lose their charm on a global scale. However, looking at the positive side, one can be rest assured that the UK working masses will enjoy better employment prospects in the current financial year and maybe, for the succeeding years as well.
Marie is an avid careers adviser and keen blogger who works for an online recruitment agency – recruitmentrevolution.com
Follow me on Twitter https://twitter.com/RecruiterCori
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