The Locksmith Journal Jan-Feb 2017 - Issue 48 | Page 62

62 • BUSINESS & FINANCE
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Labour market strength will see jobs growth continue into 2017

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THE UNDERLYING STRENGTHS OF THE UK ’ s labour market will see jobs growth continue into 2017 , according to the latest CBI / Pertemps Network Group Employment Trends Survey . The annual survey – in its nineteenth year , with 353 respondents employing nearly 1.2 million people - found that four in ten ( 41 %) firms across the UK will grow their workforce in the year ahead . For the fourth year running , the survey shows that growth in permanent job opportunities will outstrip temporary recruitment .
THE SURVEY
Carried out between August and October 2016 , the results found that while the pace has slowed by comparison to last year ’ s survey , the positive balance of firms expecting to add employees over those expecting to shed jobs stands at + 28 %. This continues the optimistic trend we have seen every year since 2011 .
However , uncertainty about the UK ’ s future relationship with the EU has shaken overall business confidence in the labour market . Overall , the balance of respondents expecting the UK to be a more attractive place to employ people in the next five years has flipped from + 16 % in our 2015 survey to -21 % in the year ’ s results .
JOSH HARDIE , CBI DEPUTY- DIRECTOR GENERAL , SAID :
“ With record employment levels , more people than ever are now in work and the strengths of the UK labour market look set to yield positive results over the course of 2017 .
“ Businesses are 100 % committed to making the best of Brexit . However , this year ’ s survey does show a greater sense of concern about the UK ’ s longterm attractiveness as a place to create jobs . Getting our industrial strategy right and understanding what the UK ’ s future relationship with the EU will be , will help ensure that this worry does not negatively impact the future performance of the labour market .
“ The Government should build on the positive moves it has already made to dispel uncertainty by drawing up plans for a smooth transition , giving firms both the time to adapt to new regulations and the confidence to invest beyond 2019 .”
Neil Carberry , CBI Director for People and Skills policy
Josh Hardie , CBI Deputy- Director General
CARMEN WATSON , CHAIR OF PERTEMPS NETWORK GROUP , SAID :
“ 2016 may have been a year of uncertainty for businesses but what we are seeing , looking ahead to 2017 , is renewed optimism with employers continuing to invest in their workforces leading to jobs growth across the UK .
“ It appears also from the survey that the majority of businesses are now working hard to push diversity and inclusivity to the fore as it is proven to bring benefits including increased talent and improved attraction and retention levels . However , skills gaps remain a concern for employers as having the right people with the right skills is crucial for any organisation ’ s performance .”
FIRMS WORKING HARD TO INCREASE PAY
Almost 6 in 10 companies ( 57 %) able to do so in line with , or above RPI inflation next year . The initial rate of the National Living Wage this year has been testing for some companies with half of respondents reported they were impacted ( 50 %). In response to the uplift in pay , 41 % absorbed the cost within their profit margins , while 26 % passed on the additional cost through increased prices to customers or suppliers . Looking ahead to 2020 , the ability of firms to cope by squeezing profits is likely to be reduced . A slightly higher proportion of affected firms anticipate passing on costs ( 28 %) over the next four years , while the same proportion expect to increase automation to boost productivity and offset
LOCKSMITHJOURNAL . CO . UK | JAN / FEB 2017 Sponsored by Burg-Wächter