SW employers grow in confidence despite Brexit
The fourth quarter of 2016 has seen a boost of confidence in the South West with hiring intentions of +3%, according to Manpower, the world’s workforce experts. The Employment Outlook in the region has risen by two percentage points from last quarter.
The Manpower Employment Outlook Survey is based on responses from 2,102 UK employers. It asks whether employers intend to hire additional workers or reduce the size of their workforce in the coming quarter. It is the most comprehensive, forward-looking employment survey of its kind and is used as a key economic statistic by both the Bank of England and the UK government.
“We are very pleased to report that employers remain cautiously optimistic this quarter,” says Krissie Davies, Operations Director at Manpower. “Employers in the South West are continuing to hire and there are opportunities out there. However, when we break down prospects across the region, we are seeing a fairly mixed picture. Bristol’s job market has benefited from a flurry of temporary roles, with a sharp spike in manufacturing and production, but permanent roles appear to be flatlining. As the dust begins to settle following the referendum, it seems that some employers feel more comfortable delaying longer-term hiring decisions. Exeter, on the other hand, tells a very different story with a real sense of buoyancy in the permanent market. Lower level engineering and manufacturing roles are very much in demand and we are actively encouraging candidates to send us their CVs.”
“Plymouth is also experiencing a boom in construction, with employers looking for these skills as they anticipate a rise in big projects including greater demand for student accommodation. We are still finding that candidates are reluctant to transition into new roles, perhaps due to the current economic uncertainty, and are advising employers to draw on the benefits of social media as a sourcing and engagement tool to communicate their brand differentiators and attract potential candidates.”
The national seasonally adjusted Net Employment Outlook has remained at +5% for the final three months of the year, defying predictions that the vote for Brexit would trigger an immediate slump in recruitment plans. However, ManpowerGroup is warning that this could be the calm before the storm. Conducted in the weeks following the referendum, the survey shows that while UK job prospects have held firm, cracks in the ice are appearing with six out of nine sectors surveyed reporting a fall in jobs optimism.
Mark Cahill, ManpowerGroup UK Managing Director: “After the initial shock of Brexit, we’re entering a new phase of prolonged economic uncertainty. The future of freedom of movement across the EU is of particular concern. As UK businesses are reliant on European talent to help fill the skills gap, we urge the government to prioritise maintaining the free movement of people across the EU during its negotiations. This would make sure the UK remains competitive, while sending a powerful message to skilled jobseekers– Britain remains open for business.”
Seven of the twelve regions in the UK reported falling Outlooks for the final three months of the year. The East Midlands is the most positive region (+9%), followed by London (+8%) and the East (+7%). Outside the North West, up one point to +6%, the north of England reports weak Outlooks with Yorkshire & Humberside falling to the joint-least optimistic Outlook of the country (-2%) and the North East dropping four points to +5%. Optimism across the South of England has strengthened, with the South East up one point to +3%. Scotland fell two points to 0%, while Northern Ireland (-2%) and Wales (+4%) both fell six points, the joint biggest fallers with the West Midlands (+5%).
