FINANCE RECRUITMENT BY PROFESSIONALS FOR PROFESSIONALS
​SINCE 1992

October Report on Jobs

The latest Report on Jobs from KPMG and the Recruitment and Employment Confederation, which Cavill Robinson contributes to, came through this week. James Stewart, Vice Chair for KPMG commented: "Brexit uncertainty continues to take its toll on the jobs market, evident by the quickest drop in permanent placements in over three years as employers delay hiring staff. Given the current climate, it’s not a surprise but is still a concern to see that the demand for staff increased at the slowest rate since 2012 – and that people are reluctant to seek new roles. On the plus side however, the latest decline in staff supply was the least marked for over two and a half years amid greater competition, softening the pressures on pay. “Looking ahead and with investment also contracting, businesses desperately need clarity on Brexit outcomes in order to re-build confidence in the jobs market and be able to make more informed decisions on their long-term hiring plans.” Neil Carberry, Chief Executive of the Recruitment & Employment Confederation, said: “Today’s figures are a sobering reminder to politicians of all parties that national prosperity relies on businesses creating jobs and growing careers. Britain’s record on jobs is world-leading. It’s a key part of our economic success, with recruiters at the forefront of it. And there are still great opportunities out there for those looking for a new job and a boost in earnings.But all this rests on business confidence – the confidence to invest, to hire someone, to try something new – and it’s clear that things are getting harder. Permanent placements have now dropped for six months in a row and vacancy growth is slowing. While we continue to benefit from the flexibility of our jobs market as demand for temps holds steady, today’s survey emphasises the real world impacts of the political and economic uncertainty businesses are facing. “The first priority should be avoiding a damaging no-deal Brexit and giving some stability back to British businesses, so they can drive the prosperity of the whole country. " Jeanette Robinson, Managing Director of Cavill Robinson Financial Recruitment said: The Cambridge market is seeing some slowdown due to the current uncertainties around the political situation but the main issue for recruiters is people deciding not to change jobs as they view it as a risk in the current climate. This combined with an unemployment rate below the national one means that for those companies seeking new staff, it is still imperative to think carefully about salary levels to attract good candidates. Overall, we need the politicians both in Westminster and Brussels to come to an agreement on the way forward so that businesses can be clear of the way forward.

Are promises about The National Minimum Wage sustainable?

When the National Living Wage was originally introduced, it was not supposed to cripple businesses whilst at the same time ensuring that employees were paid fairly. We now have both Labour and the Conservatives promising significant increases. The Conservatives have pledged to raise the National Living Wage to £10.50 within the next five years and to reduce the age for those who receive it from 25 to 21. Labour meanwhile wants to increase it to £10 an hour and to include all workers under the age of 18. Whilst it is truly commendable that both sides want to end low wages, there is a third element in the equation and that is the companies who are expected to find this extra amount - and it will not just be the extra amount for the lowest paid. In order to keep a differential between workers, they will no doubt be faced with pressure to increase the wages of all employees. This is on top of all the other employment costs, which have been loaded on to them in recent years. These include the apprenticeship levy, previous increases in the National Living Wage and added pension costs. It seems that government and opposition alike have the impression that money grows on trees and all businesses have to do, is to reach up to the branches to pick some off and hand it out to deserving workers. Sadly, this is not the case and for many smaller enterprises or in those commercial areas where margins are small such as the retail sector, further large increases to staffing costs could be the straw which breaks the camel's back. Job losses could occur so that the books can be balanced and people could find themselves out of work, rather than feeling wealthier. In addition, the costs of paying people more will have to be passed on to the consumer resulting in inflation. Raising people's wages is a laudable ambition and an apparaent vote winner but politicians need to be careful that in zealously pursuing it, they don't actually achieve the opposite and put people out of work. Have a good week. Jeanette

Is the future a four day week?

There has recently been talk in the press of the Labour Party, backed by the Unions wanting people to only have to work a four day week and for companies to still pay them as if they were working for a five day week. It would be lovely to think that this could work and in some lines of work, with the efficiencies which technology can bring, it might do. If it could be made to work, it would allow people to balance their lives more, particularly if they are carers either of elderly parents or children. However I think in many cases there would be major hurdles to overcome. It would create recruitment issues in essential services where there is already a shortage of qualified staff, such as the NHS. In addition, firms would need to be sure that the same level of productivity was reached in four days as in five in order to be able to pay the same level of salary. This is not a straight forward issue at all and if it were to be introduced needs to be thought through carefully. I'm sure, though, that people thought the same when weekends were introduced and now we take them for granted. It will certainly be interesting to see whether it becomes a workable proposition at some stage in the future. Have a good week. Jeanette Robinson