The immediate jobs outlook for the U.K. remains positive as employers are holding on to staff to avoid losing skills despite low levels of demand, the latest Labour Market Outlook survey from the Chartered Institute of Personnel and Development (CIPD) revealed Monday.
The net employment balance came in at 5 in the third quarter, compared to 6 in the prior quarter. The net balance measures the difference between the proportion of employers that intend to increase total staffing levels and those that intend to decrease total staffing levels.
The report showed that pay packets will continue to be squeezed at 1.6 percent. At the same time, the number of firms planning to make redundancies fell to 29 percent from 32 percent three months ago.
The spare capacity implied by the research indicates that firms are ready to increase their output quickly if demand grows, Gerwyn Davies, Labour Market Adviser at the CIPD says. "But there is only so long they can hold out for growth."
The report concluded that the recent trajectory of the jobs market, which has seen unemployment fall, may change course if economic growth does not pick up.
by RTT Staff Writer
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