Labour Market Outlook
The Adecco Group UK&I has joined forces with the CIPD (Chartered Institute of Personnel and Development) to produce the CIPD/The Adecco Group Labour Market Outlook (LMO). The LMO is a quarterly report providing analysis and commentary on key employment trends.
Our partnership with the CIPD supports our aim to provide fresh insight and deeper understanding into workforce management and recruitment challenges by building strategic links with professional organisations and academic bodies.
The LMO is one of the most authoritative employment indicators in the UK. The report is typically based on a survey of more than 1,000 HR professionals and senior decision makers. Further information about survey methodology can be found in the reports.
About the CIPD
The CIPD is the professional body for HR and people development. The not-for-profit organisation champions better work and working lives and has been setting the benchmark for excellence in people and organisation development for more than 100 years. It has more than 140,000 members across the world, provides thought leadership through independent research on the world of work, and offers professional training and accreditation for those working in HR and learning and development.
The CIPD/The Adecco Group Labour Market Outlook (LMO), Autumn 2017 report
The Autumn LMO has increased its survey size to 2,007. This has given us new regional and industry insights.
This quarter, we are seeing what we have termed a ‘multi-tiered economy’. The survey shows that there is no one-size-fits-all answer for the current market, and it is important to understand the nuances of the field you are working in. Variances in region, sector and company size all have an impact on how a company is experiencing skills shortages, Brexit and other pressures.
The Net Employment Balance (NEB) for the Autumn report is +26 (down from +27 in the Summer report). Broken down by sector, the NEB for the private sector is +32 (down from +35), the public sector is +10 (up from +5), and the third/voluntary sector is +20 (down from +29). This is overall a positive outlook for the employment market.
We have seen a rise in the median basic pay increase intentions with this report. Overall, the median basic pay rise expectation has increased to 2% (1% in the last report). The breakdown by sector is:
- private sector, 2% (same as last report)
- public sector, 1% (same as last report)
- voluntary sector, 1.5% (1.4% in the last report).
We caveat the findings on wage growth with the fact that only 55% of those surveyed, who are making a pay decision, were able to foresee the outcome of that pay change.