UK firms to continue hiring, according to CBI study
Mon 29 Oct 2012
LONDON (SHARECAST) - A survey of 300 firms, employing over 1.4m people between them, showed that 35 per cent of the companies expect staffing levels to rise over the next 12 months, while 15 per cent predict them to fall, the Confederation of British Industry (CBI) said.
The resulting balance of +20 is lower than that seen at the same point last year, but still makes for positive reading, CBI has said.
In fact, for Chief Policy Director Katja Hall the ability of the labour market to continue to generate jobs despite flat economic growth is nothing less than a “mini-miracle”.
Hall said: “Businesses look set to continue with the positive but cautious approach to hiring that we've seen over the past couple of years, and this is echoed in expected pay restraint designed to protect employment.”
As regards pay restraint, the survey shows that this trend is expected to continue, with 36% of the firms surveyed planning wage rises below-inflation and a further 16% of companies planning a pay freeze.
All of the above seems to point to the UK employment miracle possibly continuing for some time longer despite flat or declining growth. Even so, it may be worth pointing out that, by some estimates, were it not for declining North Sea oil production then the country´s economic output – as measured by gross domestic product (GDP) - would already be above pre-crisis levels.
Furthermore, for some economists the above declines in output from the petrochemical sector, along with the impact sustained by the financial sector, are two of the main factors behind the so-called “productivity puzzle”.