A recent survey has reported that the number of employers who plan on hiring new employees in 2018 is down on last year’s figures. What does this mean for job seekers and can the economy expect a lift during the coming year? Read on to find out.
- The findings of a recent survey
- How businesses feel regarding the future
- What economists have to say
- How job seekers will be affected
- Economic growth in 2018
- Other Brexit effects
Data From The Recruitment and Employment Confederation
Recent data that was compiled by the Recruitment and Employment Confederation (REC) seem to be in sync with the recent official figures that show that the numbers of people in work are falling. Employers may be put off hiring new employees as 2018 does not have a healthy economic outlook due to fears over the Brexit vote. The REC reported that employers in the London area are expecting to dismiss some of their staff.
The data collected for the survey showed that during the three months until November, the number of businesses that planned to hire permanent staff over the following 12 months was only 16%. When the same question was asked at the same time the year before, the figure was a much higher 24%. None of the businesses that took part in the survey thought that the economy would improve over the next year.
A Survey by the Confederation of British Industry
Another business survey that was conducted by the Confederation of British Industry was just as gloomy. As Britain makes preparations to leave the EU in March 2019, almost two-thirds of companies said that they thought that Britain would become less appealing to businesses in the future. The recent advances in the Brexit negotiations by Theresa May, where the future of trade between Britain and the EU will be examined had not yet taken place when they conducted both of these surveys.
What do economists have to say?
The latest Reuters poll of economists has forecast that the British economy will not be as strong as the previous year. Growth is expected at 1.3% during 2018, compared to 1.5% during 2017. The Chartered Institute for Personnel and Development (CIPD) stated that signs were indicating that Britain had already reached peaked employment and that they could not see evidence that pay rises would happen anytime soon. Ian Brinkly of the CIPD remarked, “Most employers can’t afford to or don’t feel the need to make an above-inflation pay rise”.
What have we learned so far?
How will less British firms hiring new staff affect jobseekers?
Slower growth in the jobs market will cause unemployment figures to rise in 2018 to 5.4% from 4.7% in 2017, which will untimately bring an increase in payday loan applications. Britain has recently enjoyed the highest employment figures for many years. Therefore, employers have found it increasingly difficult to find the staff to fill vacancies. This has resulted in employers having to utilise the staff that they have to cover the workload. Prospective employees will have more competition from other job seekers to fill the lesser number of positions that will be vacant. If they want to get the job they will have to be better qualified to enhance their chances of success.
Could the economy grow in 2018?
A global think-tank doesn’t seem to think so. The Organisation for Economic Co-Operation and Development has said that economic growth in the UK is expected to fall for the next two years until Brexit. The reasons for this prediction include productivity, inflation that has been caused by the weak pound since the Brexit vote and rising consumer debt. They also predicted that the economy would be propped up by the fact that consumers would use some of their savings to compensate for the lack of pay rises in line with inflation. However, as the split from the EU approached, consumers could stop spending.
How else will Brexit affect UK economy?
People’s concerns over Brexit is affecting the property market, according to economists. The problem will be most apparent in central London where international investors motivate demand for property. The Royal Institution of Chartered Surveyors has predicted that property prices will remain flat in most of Britain. However, it will fall in London and the South East.
What can we conclude about British employers hiring new employees in 2018?
It appears that many businesses who took part in the REC survey feel uncertain of the future regarding hiring new employees. As a result, they are reluctant to take on more permanent staff. As many believe that the economy will not grow in the new year, they are making the most of the staff that they have to fill employment gaps. These findings are in line with unemployment figures which are beginning to rise from the recent very low figures. Future jobseekers will have to be better qualified to fight for fewer jobs, and wage rises do not seem to be forthcoming. A lack of wage rises may cause an increase in the need for cash advance loans. Global economists are predicting slow economic growth in the UK for the next two years until the future becomes clearer after Britain leaves the EU in March 2019.