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Early Indications of a Jobs Recovery?

UK employers are the most optimistic about jobs in eight years, according to the latest CIPD/Adecco Labour Market Outlook published today.  The survey shows that all sectors are experiencing a jobs recovery, alongside an improvement in pay prospects.
The quarterly report’s net employment intentions balance, which measures the difference between the proportion of employers expecting to add jobs and those planning to cut them, has risen sharply to +27 for the second quarter of 2021, compared with +11 in the first quarter of the year.
Strong employer optimism is evident across all three major sectors of the UK economy, including the private sector (+28), voluntary sector (+28) and the public sector (+22).  It means employment intentions are stronger than at any time since the February 2013 report when this measure was introduced.
The survey also found that redundancy and recruitment intentions have returned to pre-pandemic levels this quarter:
  • The proportion of organisations planning to recruit in the three months to June 2021 has risen to 64% – the highest level since the February 2020 Labour Market Outlook.
  • Strikingly, there has been a sharp increase in hiring intentions among the worst affected sectors during the pandemic.  For example, over two-thirds (66%) of hospitality firms plan to recruit in the second quarter of 2021, up from a third (36%) in the first quarter of 2021.
  • The proportion of employers intending to make redundancies continues to fall. Just over one in ten (12%) expect to cut jobs during the next three months, down from 20% in the previous quarter.  This is consistent across all three sectors of the economy.
The report, which surveyed more than 1,000 UK employers, is well worth a read for more detailed analysis and sector-specific data.

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