As private sector hiring provides more evidence that the economy is healing, Britain is set to end the year with its strongest rate of jobs growth since 2007.
The recently completed National Seasonally Adjusted Net Employment Outlook showed that 6% of companies are expecting to hire in the final quarter of 2013 – up from 5% in the previous three months. This indicates the strongest forecast growth in hiring since before the financial crisis hit.
Boosted by a recovery in the property industry, financial services in one of the most buoyant sectors – with high numbers of new vacancies expected. Furthermore, despite recent closures and increasing pressure on the high street, retail is on course to achieve its strongest job growth for five years.
The figures reinforce Chancellor George Osborne’s argument that the economy is in the middle of a ‘broad based and sustainable recovery.’
Managing Director for Manpower, James Hick, said that the survey results reveal a ‘game-changing year’ for the jobs market in a number of areas, with the North East – recently branded as ‘desolate’ – showing surprising levels of optimism amongst prospective employers. He commented;
“Looking to the future we see further finance jobs in the pipeline. We expect financial institutions to gear up for this by taking on staff with the necessary skills.”
Following the release of the National Seasonally Adjusted New Employment Outlook, the results were further boosted by the latest unemployment figures that were released this week. They revealed that the rate of unemployment in the UK has dropped to 7.7% between May and July 2013 – down from 7.8% in the previous three months.
The official figures also showed that the number of people claiming Jobseeker’s Allowance fell by 32,600. With 1.402 million people in the UK now claiming Jobseeker’s Allowance, these figures are at their lowest levels since February 2009.
Although the figures regarding the UK jobs market are positive overall, the number of people working part-time because they cannot find a full-time job has risen to 1.45 million – the highest since records began in 1992 and double the number compared to rates five years ago.
Despite this, Victoria Clarke at Investec commented;
“It’s another set of impressive figured on the job market with positive signs on all three main indicators. It suggests the jobs market is recovering, much like the broader economy. It reinforces our view that unemployment will come down to 7% quicker than the Bank of England expects.”