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. 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), Spring 2018 report

Employment confidence

This report shows the highest figures for employment confidence since the LMO introduced the measure in winter 2012/13, with the NEB (the difference between intentions to increase and decrease staff numbers) at +26 (+16 in the winter 2017/18 report).

Broken down by sector, the NEB for the private sector is +32 (+ 22 in the previous report), +9 in the public sector (up from -7), and +21 in the voluntary sector (+20 in the previous report).

Pay rises

The average basic pay increase expectation for the next 12 months is at 2.1%. This is up from 1.8% in the last report.

On the whole. the report paints a mixed picture, however it is positive to see demand and wages rising. The employment outlook will continue to improve if employers respond to skills gaps in the right way.