Jobs market is finally starting to catch up with the rest of the economy

There is no doubting that market conditions have improved markedly over the last two quarters and as a result the recruitment sector is starting to feel the benefit.

There has been a definite upturn in trading across the board and the change in sentiment is filtering through in just about every sector of the economy.

Commentators and financial experts have been in agreement for some time that we are heading in the right direction.

All of the major indicators are pointing to a rapidly improving situation with the markets, employment and the housing sector all showing marked signs of improvement.

And that surge is growth is now starting to have an effect on the employment market after six years of stagnation. The reality is UK’s economy is actually faring much better and is in a healthier condition than many of its counterparts on the continent and further afield.

It is actually performing far stronger than many economic experts had been predicting or were forecasting.

The pace of the recovery has actually started to pick up over the last two quarters and the signs are continuing to be very encouraging.

And now it is becoming apparent that the sense of renewed confidence is starting to be felt by individuals as well as the major business, government and financial institutions.

Consumer spending still has some way to go before we see the levels of a decade ago and people are still being cautious when it comes to personal finance – and rightly so.

However just as importantly it appears that there is a new pattern emerging within the recruitment sector that could have a major impact on the improving economic picture.

It is important to remember that the employment conditions have a direct impact on the economy. If companies are to grow and prosper then they need to be able to recruit the right people with the right skills and qualifications.

However, over the last six years the recruitment market, with the exception of London, has remained largely static. People have been staying put and keeping hold of their job, recessions mean that employees are far less likely to take any risks.

That lack of movement has been coupled with low wage settlements across most sectors. Employers managed to keep redundancies to a minimum by keeping tight control over spending – and that includes employment costs.

But if the reports are correct then the congestion in the employment sector is showing signs of starting to ease.

The most recent report from accountancy firm KPMG on the UK Employment Sector backed up this point of view.

It appears that after years of caution people are finally starting to wake up to the fact that the economy is in recovery mode and as a result there are employment opportunities available for those looking to move their career on to the next stage of its development.

But that also means that employers will need to change their mind-set. Along with economic growth will come an inevitable growth in salary levels and wage settlements.

The pendulum is now swinging back in favour of employees and with more opportunities opening up for them they are now in a stronger bargaining position.

The market always decides and employers who fail to offer the going rate will lose out to their rivals.


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