Budget 2014: More investment for apprenticeships pledged

An energy sector jobs boost, recruitment help for SMEs and Apprenticeship Grants for Employers (AGE) success rates were the main headlines concerning our industry from yesterday’s 2014 Budget.

And luckily for the Chancellor, predictions made last year about the growth of the economy and relief for the jobs market have been backed up by figures released by the Office of National Statistics yesterday also.

The report showed that between November 2013 and January 2014, unemployment fell by 63,000, with almost half of that figure accounting for 16-24 year olds. Average earnings also increased by 1.4%, with a rise in the number of self-employed also recorded.

The positive news for these two groups of people was the focus at least of the recruitment side of this year’s Budget, with the government pledging continued support of Enterprise Zones to help entrepreneurs and start-ups hire staff and grow their business through private investment.

Mr Osborne also revealed that the AGE scheme will continue to be a key focus in 2014, with an extra £85 million being invested to provide more than 100,000 grants over the next two years.

This in particular has been received well by leading HR and recruitment bodies and industry leaders, who keenly recognise the critical link between investment in young people and future growth.

British Chambers of Commerce director general John Longworth said: "With a huge confidence gap still separating employers from young job-seekers, we are very pleased to see the Chancellor heed our call to help firms take on and train tomorrow's workforce.”

On a less positive note, many were left disappointed to discover that the plans to remove under 25s from employers National Insurance Contributions did not form part of this year’s Budget as expected. Had it been included, the cost of hiring would have been dramatically reduced for many companies through lifting 1.5 million young workers out of the jobs tax. Allusions were made, however, to this forming part of next year’s reform plans – a pledge that campaigners will no doubt continue to keenly push for.

As ever, I welcome and applaud any initiative that serves to create jobs and strengthen our industry. Support must therefore also be pledged on a local as well as national level in order to keep this slow ascent towards recovery going.

JOBS OUTLOOK SURVEY DELIVERS PROMISING RESULTS

Catching up on recent findings from the Recruitment and Employment Confederation’s (REC) latest JobsOutlook survey, I was thrilled to read that 56% of employers intend to increase their headcount over the next quarter.

It’s another encouraging statistic that serves to reflect increased optimism of businesses about the future of the economy and, more specifically, the jobs market.

A rise in the percentage of bosses who foresee agency staff headcounts will “stay the same” also shows growing confidence in the temporary labour market and the benefits agency staff can bring to businesses.

The summer months are a particularly busy time for temporary workers, who are most often employed to meet fluctuations in demand and to assist during sickness/holiday/maternity cover.

Temporary recruitment is something that myself and the team at ACR commit a lot of our time to, as we recognise the value that flexible work can offer both clients and candidates. And while we know there is a demand for it here in Peterborough, it’s great to see that the benefits are becoming more widely recognised, as reported by the REC.

Over the next year, one in three respondents plan to increase the use of agency workers, while 60% predict no change in their use of temps. This leaves just 6% who expect to make a reduction - a pleasingly low percentage.

ACR inputs data into the JobsOutlook survey on a monthly basis so it’s always interesting to see if our findings match those on a national level. We continue to be reassured by the latest results, and look enthusiastically forward to what the next quarter will bring.

Positive end to 2012 with record fall in unemployment

It might be clichéd to say, but figures released this week from the Office for National Statistics are sure to bring good tidings to job seekers this Christmas, with the greatest quarterly fall in jobless figures since 2001.

A promising piece of news at last; largely due to a steady improvement in the jobs market over the past three months, as well as an overall increase in employer confidence.

The data is certainly encouraging for businesses, reflected in a slow but sure narrowing of the gap between employer demand and supply both nationally and locally. Recent reports show that there are now more positions than candidates available in the IT sector, which is something that we have experienced first hand here at ACR. Last month, we launched a recruitment drive in response to record rises in the number of IT roles available locally, holding a dedicated open day at our offices to identify suitable candidates with the right skills.

Also relevant to our own work in Peterborough was the statement made by the REC’s chief executive Kevin Green, who stressed the importance of temporary and part-time workers in contributing to the recent economic development. To echo this, I - along with the rest of the team - have always recognised the need for flexible working hours for both clients and candidates. This is why we have staff dedicated solely to temporary and interim placements, with demand continuing to grow.

As 2013 approaches, we’ll be working harder than ever to support and contribute to this growth locally. We certainly believe the overall findings of the latest national figures are reflected here in Peterborough and hope the positivity generated helps push the local economy forward into the New Year and beyond.

Employers upbeat about growth in UK jobs

The cautious optimism we’ve noticed in the job markets over recent weeks isn’t limited to just our clients or even our region. According to the latest JobsOutlook survey from our industry body – the REC – 94 per cent of employers expect to maintain or grow their workforce over the next 12 months.

And a quarter are planning to increase the number of temps they use. That’s a move we often suggest to clients deliberating over staffing levels.

Using temps offers tremendous flexibility – they can be drafted in when work volumes are high and then not used during quieter periods. And of course taking on temps is a great way to try potential employees out. What better way to decide if a person will fit into your work environment than by putting them in it.

That’s why I was disappointed to see the TUC’s comments following the announcement of the latest job figures.

Unemployment fell by 3,000 which the TUC described as ‘deceptively healthy’ because of an increase in temporary and part time work.

Surely any fall in unemployment figures – after so many months of rises – should be welcomed. Taking on temporary staff is a step in the right direction. It suggests companies are seeing an upturn in the amount of work but keeping their options open – a healthier approach to taking on permanent staff and then struggling to make the wage bill or being forced to consider redundancies.