Optimism Found in UK Job Market

6 September 2010

A keyword discussed by those outside the economic analyst circle is not double dip recession, nor is it interest rate, or inflation, it is “jobs”. Most people believe that come a recession or even a double dip recession as long as they have a job they can weather the trouble at hand and ride the storm to the other side. Losing a job brings fear in the future, and the worry of finding another job when times are hard is a daunting task and adds to the fear.

A recent survey concerning the services sector of the job market suggested that the loss of jobs in August was a bad sign that the private sector would be little prepared to offer jobs for those lost in the public sector. A much stated fact that has accompanied government budget cut news has been that there would be private sector jobs to more than make up for those lost by budget cuts as a shift took place within the economy. The news is more optimistic than first thought. Two recent surveys of the job market show a healthier status and that indeed the private sector may be able to step up to the task.

A study by the employment agency, Reed, found that despite the summer season the demand for workers was higher than usual. The sectors for leisure, tourism, and accountancy had the highest level of vacancies seen all year. They reported the number of vacancies from new jobs was up in Northern Ireland and Scotland but less than before in London.

Yorkshire Bank also conducted a study and of those participating 49 per cent planned on new hires over the next year. Of those intending to hire half were looking to hire skilled workers. Management jobs were to be filled by one fourth of the jobs.

Reed’s managing director, Martin Warnes said: “Traditionally, the UK job market is quiet in August. Against this background, the fact that the Reed Job Index has held steady over the holiday season, even though public-sector jobs continue to decline, is quietly encouraging news for the economy as a whole.

“While the seasonal tourist boom and an unexpected rise in consumer confidence may have helped to fuel record demand for new staff in leisure, tourism and retail, it seems that overall confidence, particularly in the services sector, has been slowly but steadily building over the summer.”

Source: Tammy Josselyn, FinanceNews.co.uk