BY Fraser Tennant
Recruitment activity in the UK will rise in the first quarter of 2021 as unemployment plateaus, according to a new report by the Chartered Institute of Personnel and Development (CIPD) and the Adecco Group.
The ‘CIPD/Adecco Labour Market Outlook’ report, based on a survey of 2000 UK employers, reveals that over half (56 percent) indicated they are looking to recruit in Q1 2021, up from 53 percent in the previous quarter and 49 percent six months ago. This is down from 66 percent during Q1 2020.
In terms of sectors, healthcare, finance and insurance, education, and information and communications have indicated strong hiring intentions. Other sectors however, such as hospitality, which continues to be affected by social distancing measures, are less optimistic.
In the private sector, companies have signalled a willingness to maintain their workforce, with the number of employers stating that they are planning redundancies dropping from 34 to 20 percent.
“These are the first signs of positive employment prospects that we have seen in a year,” said Gerwyn Davies, senior labour market adviser at the CIPD. “Our findings suggest that unemployment may be close to peak and may even undershoot official forecasts. However, it is far too soon to rule out further significant private sector redundancies later in the year if the government does not extend the furlough scheme or if the economy suffers any additional unexpected shocks.”
To this end, the report urges the UK government to extend the coronavirus (COVID-19) job retention scheme until at least the end of June to help support sectors most affected by the restrictions.
“The start of 2021 has been challenging, with the UK entering into its third lockdown,” said Alex Fleming, region president of Northern Europe at Adecco Workforce Solutions. “It is still positive to see some signs of labour market recovery, with a clear rise in net employment intentions. The furlough scheme and redeployment have enabled many organisations to avoid redundancies during the pandemic.”
The report also notes that investing in reskilling and upskilling will be important tactic in future-proofing the workforce – a key factor in helping to minimise any jobs fallout.
Mr Fleming concluded: “Companies that invest in career development, enhancing the skillsets of employees and maintaining a positive workplace culture will help to strengthen their talent attraction and retention strategies during what remains such an unprecedented time.”