…however, businesses don’t think the government target of full employment will be achieved
Despite predictions from the Office for Budget Responsibility that 60,000 people will lose their jobs as a result of the changes to the national living wage, 95% of businesses say the new figure won’t discourage them from hiring, according to research from UK job website, totaljobs.
However, 71% also said that they do not believe that David Cameron’s target of full employment will be achieved in the next five years, with nearly half (49%) of British businesses fearing recruitment will be difficult in the coming months.
The national unemployment rate is currently sitting at 5.1% - its lowest level since May 2008, signalling a shift in candidate supply and demand.
Over two thirds (68%) of employers are finding the employment market to be more candidate-led than previously, a figure reflected by the 43% of jobseekers who say that they have been more selective about the roles that they have taken over the last three years.
The result is that over half (55%) of employers say that they currently have a skills shortage in their business.
John Salt, group sales director, totaljobs, said: “The research reinforces the argument that the UK economy will struggle to maintain long-term sustainable growth if the mismatch between the supply of jobs and existing jobseeker talent pool is not addressed. In an increasingly candidate-led market, there are a number of ways businesses can ensure that they are recruiting and employing the right talent.
“It’s never been more important to ensure that businesses retain a clear focus on employer brand positioning across multiple channels to attract the right talent. This should then be complemented by initiatives that speak directly to candidates as individuals, headlining what appeals to them most. This can include company culture, not just skills and experience, the type of working environment and a business’ approach to work-life balance.”