SW hiring sentiment slides but workers remain in demand

Employers in the South West are becoming more cautious about hiring as we move deeper into 2017 according to ManpowerGroup, the world’s workforce experts. Although employment optimism in the region is in line with the national average at +5%, the South West is one of seven regions facing a falling outlook.

The ManpowerGroup Employment Outlook Survey is based on responses from 2,119 UK employers. It asks whether employers intend to hire additional workers or reduce the size of their workforce in the coming quarter. It is the most comprehensive, forward-looking employment survey of its kind and is used as a key economic statistic by both the Bank of England and the UK government.

Simon Edwards, Operations Director at ManpowerGroup, said: “South West employers are clearly a little apprehensive about the future, but we’re seeing enough life in the hiring market to suggest jobseekers can be cautiously optimistic. There remain plenty of opportunities across sectors, despite the slowdown in overall sentiment. In fact, permanent roles are increasingly available, with operations supervisors, quality engineers and support specialists in particularly high demand. We are also seeing an increase in demand for manufacturing roles, particularly for those with specialised skills. Such roles are difficult to fill, so employers are keen to secure quality candidates. Metal fabricators, for example, are in luck.

“In Plymouth, the expansion of call centres for Sitel, Marks & Spencer and John Lewis are helping to drive jobs positivity. We are also seeing strong demand for assembly line, production officers, and temporary end-of-production roles in the city. The South West may have lowered hiring expectations generally, but there are still good opportunities out there for employers and candidates.”
Nationally, private sector hiring has dropped to its weakest level since Q1 2014. Employers in six of the nine sectors surveyed reported a falling Outlook. The overall Net Employment Outlook, which includes both public and private sector employers, has dropped two points to +5%.

Mark Cahill, ‎ManpowerGroup UK Managing Director: “The impending trigger of Article 50 is clearly affecting confidence in the jobs market. The private sector plans to hire at its slowest rate since 2014 (+4%), with only construction, manufacturing and transport and communications planning to hire at previous levels. The employment rate is at its highest level since records began in 1971, but if you lift the bonnet to look at the engine of the economy, job creation has slowed and employers are becoming more cautious. The companies which have powered Britain’s economy through the immediate post-referendum period are easing off the gas.”

All but five regions report falling Outlooks for the coming three months compared to the previous quarter. The biggest fallers are the two strongest Remain-supporting areas of the UK: Scotland, down 11 points to -3% and London, down five points to +3%. The West Midlands and Yorkshire & the Humber both fell three points to +5%. The North East and South East are both down one point to +5% and +4% respectively. Northern Ireland and the North West are the only risers, both up three points to +7% and +6% respectively. Three regions report unchanged Outlooks: the East (+9%) is still the most optimistic region ahead of the East Midlands (+8%), while Wales (+2%) reports the second weakest Outlook in the UK.