Analysts predict continued job growth in 2014

Jobs growth

Business groups and analysts have predicted a positive outlook for 2014 and recruitment in the UK. The Chartered Institute of Personnel and Development (CIPD) revealed that the 2012/13 ‘jobs enigma’ that was a feature of the employment market last year, would turn into a ‘jobs machine’ in the coming year.

Furthermore, in the institute’s annual analysis of the labour market, Chief Economist, Mark Beatson highlighted how UK employment has already reached a landmark 30 million. This is great news for the market after the Office for Budget Responsibility predicted that this would not happen until Autumn 2015.

It is also thought that a similar pattern to 2013 is likely to occur this year and the OBR’s predictions will be outstripped once again. If correct, the UK could see employment levels rise by more than 300,000 or even 500,000.

Speaking about the predictions, Beatson commented:

“If this turned out to be the case, the ‘magic’ 7 per cent unemployment rate will be reached during 2014.”

The significance of this figure relates to the trigger point at which the governor of the Bank of England has said he will review interest rates.

Offering a further boost, business group, CBI has predicted that most companies will increase the size of their workforce, grow their graduate intake and expand the number of apprentices that they take on in 2014.

In his New Year message, CBI’s Director-General, John Cridland said:

“Businesses must support employees in every part of the country to move up the career ladder, while also giving a helping hand to young people taking their first tentative steps into the world of work. As the financial situation of many firms begins to turn a corner, one of the biggest challenges facing businesses is to deliver growth that will mean better pay and more opportunities for all their employees after a prolonged squeeze.”

Despite foreseeing a positive year for jobs growth however, experts have also warned that wages and productivity need to increase to come into line with the rising cost of living. Beatson also added that the impact of the recession on productivity had meant that output per hours worked fell. He said that this is also something that needs to be addressed if workers are expecting real-term pay rises in the coming months.

What are your recruitment predictions for 2014? Do you think the UK jobs market will continue to see growth once again this year? Will unemployment rates continue to decrease or do you think the market still has a difficult road ahead? Let us know your thoughts below.

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