Member Article

Jobs to be created in every region in the UK in 2015

One half of British businesses are planning to expand their workforce in 2015, with jobs projected to be created in all UK regions, according to a new survey conducted by the CBI and Accenture.

Their survey found that 50% of firms plan to increase their workforce in 2015, with only 12% planning to reduce it, giving a positive balance of +38%

Job growth is expected across all parts of the UK: a positive balance of +50% in Scotland; +49% in the North West; +45% in Wales; +44% in the West Midlands; +44% in the North East; +44% in the South East; +43% in London; 43% in the East Midlands; +42% in Yorkshire and Humber; +41% in the East of England; +37% in the South West and +36% in Northern Ireland

However concerns over skills gaps that could prevent some of those jobs being filled are seen as the biggest workforce threat to UK competitiveness; and worries about new regulation damaging job creation in the UK’s flexible labour market are a close second.

The CBI/Accenture Employment Trends Survey 2014, covers 323 businesses employing a combined total of more than 1.25 million people.

Also, job prospects for young people have improved on last year with many firms planning to recruit graduates and apprentices in 2015.

Additionally, the survey reveals that pay rises are anticipated in 2015, though at a cautious rate, reflecting weak productivity and competitive pressures. The research underlines also the vital role played by the UK’s flexible labour market in underpinning growth and job creation, which the CBI is urging the next Parliament to preserve.

Katja Hall, CBI deputy director-general, said: “Businesses are planning to create jobs in every region of the UK next year as the recovery continues, and more and more of those jobs will be permanent.

“The outlook for young people is also looking brighter as firms look to boost their graduate in-take and expand apprenticeships.

“We want to see everyone enjoy the rewards of the economic recovery. Growth should work for everyone, and skills are the key route to ensuring that this happens through improved productivity and pay.

“It’s a concern that the UK’s growing skills gap is now seen as the number one workforce threat to the long-term health of its economy.

“Companies and the Government need to work together to find ways to develop skills within the workforce and help employees move into higher skilled and better paid jobs.

“Those in regular work through the year saw wages rise this year and this trend will continue in 2015. Overall, for those in regular work, wage increases have broadly kept pace with inflation, although those with more broken employment histories have seen little respite.”

This was posted in Bdaily's Members' News section by Clare Burnett .