The UK jobs market could finish 2013 at its strongest level since the start of the downturn, according to a new survey of more than 2,000 employers by recruitment giant Manpower. The firm’s Employment Outlook Survey estimates that the number of new jobs during the period will grow by 6%, reflecting improved and sustained optimism by employers for the country’s future economic state.
Over the fourth quarter, says the report, the biggest employers are likely to be finance and business services organisation, who will provide jobs to 16% more workers. That predicted rise will stem largely from financial firms attempting to fix blunders within the industry, says Manpower UK managing director James Hick: “While the big banks have a new spring in their step – with Lloyds Banking Group and RBS poised to return to the market and Barclays about to embark on a big fundraising initiative – curiously, job creation in the sector is actually all about fixing the mistakes of the past and avoiding problems in the future.
“Firstly,” he added, “there’s the issue of mis-selling. At the beginning of 2013 we estimated that 20,000 new jobs had been created by the big banks for the sole purpose of servicing PPI claims. It looked like the issue was fading away – but that was before this summer, when we saw the likes of Barclays and Lloyds massively raise the amount of money set aside to deal with PPI claims. Victims of the latest mis-selling scandal – this time of CPP credit card insurance policies – will receive their share from a pot of nearly £1.5 billion. When added to the £1.5 billion recently set aside for dealing with PPI claims, this brings the bill for mis-selling to £3 billion in the last few weeks alone. This will undoubtedly translate into jobs.”
Hick was also enthused by Bank of England governor Mark Carney’s decision to use jobs as his primary yardstick for the UK’s economic performance. In Carney’s view, the current interest rate should not budge until 750,000 new jobs are created. “The jobs market has suddenly become the hottest economic indicator in town,” Hick said. “Our survey shows that it’s going to take a while before we get to a situation where 750,000 new jobs are created … But it also reveals that 2013 has been a game changing year for the UK jobs market in a number of key sectors.”
As well as the corrective employment strategies adopted in the financial sector, Hick pointed to improvements in the retail world. “HMV is a good case,” he said. “The business has emerged from collapse and they’re now looking to take on staff to work in stores in places like Birmingham. Of course, retailers don’t just need staff in stores. As the shift to online shopping continues we’ve noticed a rise in demand for ‘lifestyle couriers’: self-employed drivers who deliver goods ordered online to people’s homes in their local areas. This is supporting and transforming both the retail and the parcel industries. What’s more, these are jobs that don’t require extensive training. Such roles appeal to retired people and also parents who want the flexibility to work around the school day.”