CIPD/The Adecco Group Labour Market Outlook Summer 2018
‘Abrupt fall in flow of EU nationals into the UK coincides with a drop in the quantity and suitability of job applicants being reported by employers’
Pay rises set to stick at 2% for most workers, but the tightening labour market is boosting earnings of some key staff and new starters.Findings from the latest Labour Market Outlook from CIPD and The Adecco Group have found that while the short-term outlook for employment remains strong, shortages in skills and labour are finally starting to take their toll.Based on a survey of 2,001 employers, findings from the report indicate that:• Demand for labour remains robust, but labour supply is failing to keep pace.• Tightening labour market is feeding through to recruitment pressures. The number of applicants per vacancy has dropped across all roles (low, medium and high-skill) since summer 2017.• New starters and key staff are more likely to be getting a salary increase. Wage growth for the wider workforce is set to remain at around 2% for the foreseeable future.
The partnership between the CIPD and The Adecco Group, now in its third year, was developed and scoped out by b2b partnerships with the CIPD team. The Adecco Group have partnered with CIPD for the past two years across the Labour Market Outlook. The partnership has just extended into the first year of a new three year partnership across the research programme.Gerwyn Davies, senior labour market analyst for the CIPD, the professional body for HR and people development, comments:“The most recent official data shows that there has been a significant slowdown in the number of EU nationals coming to work in the UK over the past year. This is feeding into increasing recruitment and retention challenges, particularly for employers in sectors that have historically relied on non-UK labour to fill roles and which are particularly vulnerable to the prospect of future changes to immigration policy for EU migrants.Alex Fleming, Country Head and President of Staffing and Solutions, The Adecco Group UK and Ireland, added:“With Brexit looming we’re seeing a talent shortage and a more competitive marketplace. In this candidate-short landscape the pressure is on employers to not only offer an attractive salary, but also additional benefits.Read the full Summer 2018 LMO Reporthere.See CIPD's press releasehere.To learn more about how b2b develops content and research partnerships for its professional body clients contact ushere.To explore how your organisation can partner with the CIPD’s other high-profile research and thought leadership programmes emailadams@b2bpartnerships.org