CBI: Jobs growth in private sector, 'but risks remain'

Monday, 14 November 2011 10:58

Although there appears to be recovery in the jobs market for the private sector, serious risks to the employment outlook as a whole remain.

This is according to the latest Employment Trends Survey from the CBI and recruitment specialists Harvey Nash, which found that 47 per cent of employers expect their workforce to be larger in a year, while 19 predict it to be smaller.

This gives a balance of +28 per cent, or +35 per cent in smaller companies.

Prospects for graduates also appear to be improving, as +11 per cent of firms say they aim to take on more university leavers in the next six months.

Furthermore, only seven per cent of companies reported that they have a pay freeze in operation, which compares favourably with the 61 per cent doing this in 2009's recession.

However, chief executive of Harvey Nash Albert Ellis warned that "there is a question mark" over whether private sector job vacancies can keep up with losses in the public sector.

In addition, the report found that businesses are scaling back employment of temporary staff after the Agency Workers Directive was introduced.

Coming into effect on October 1st 2011, temps with 12 weeks of continuous employment will be entitled to the same basic working conditions as they would have been had they been hired directly on a full-time basis.

CBI deputy director-general Dr Neil Bentley said: "It is encouraging that firms right across the UK are growing their workforces, especially smaller companies.

"But employers are making hiring plans on shifting sands and there is a risk the tentative private sector jobs recovery could be blown off course by fast-moving economic events at home and abroad."

• Tags:
• cbi
,
• credit card
,
• employment rights
,
• jobs
,
• news
,
• private sector
,
• public sector
,
• spending cuts