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The CIPD’s quarterly Labour Market Outlook in partnership with The Adecco Group survey report is one of the most authoritative employment indicators in the UK. The report is based on a survey of more than 1, 000 employers, many of whom are drawn from the CIPD’s membership of around 140,000 HR and development professionals.

Labour Market Outlook: Summer 2017

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The past quarter has once again been a period of change in the UK; June witnessed both the start of Brexit negotiations and a snap election which resulted in a hung parliament. In the employment space, the long-awaited Matthew Taylor review came out mid-July with recommendations about the UK's future employment landscape.

Despite these events, the CIPD/The Adecco Group Labour Market Outlook quarterly report reveals a buoyant labour-supply market; the turnaround in net employment balance in the public administration and defence sectors is particularly promising. However, there's an ongoing concern about weak wage growth, so employers need to be mindful of productivity levels to combat this.

Political uncertainties have not translated into a slowdown in hiring intentions. To the contrary, the report demonstrates a rise in the number of employers that are expecting to increase staff levels in Q3 of 2017, a trend that is especially pronounced amongst private sector service firms.

While employers are continuing to recruit, context is important here, and employers and the Government should not become complacent. Without a set post-Brexit immigration policy in place, many employers and EU workers in the UK are still in a state of uncertainty. With No 10 having made it clear that freedom of movement will end after the UK leaves the EU, sectors that depend heavily on non-UK skills, for example hospitality and retail, will certainly face tough talent challenges in the coming months ahead.

We believe the Government needs to invest in measures that will protect tomorrow's economy. This year's introduction of the apprenticeship levy is an encouraging start. While it's too early to judge the effectiveness of this initiative, we hope it will prompt more employers to rethink their talent management strategies. Naturally, in addition to this, more needs to be done in terms of creating courses, both apprenticeship and non-apprenticeship based, that will add the best value to employers and workers.

As in recent quarters, the uncertainty around Brexit negotiations is still a factor for the UK and its labour market. In the face of these unknowns, employers can start to prepare now by monitoring the situation, mapping their workforce and potential future issues, and then putting adequate recruitment and retention contingency plans in place. This will ensure the UK's labour market is in the best possible position moving forward.

Download the Survey report below:

The Adecco Group is the world’s leading provider of workforce solutions, transforming the world of work through talent and technology. Each year, The Adecco Group provides over 1 million people around the world with career opportunities, guidance and insights. Through its global brands Adecco, Modis, Badenoch & Clark, Spring Professional, Lee Hecht Harrison and Pontoon, The Adecco Group offers total workforce solutions including temporary staffing, permanent placement, career transition, talent development, and outsourcing. The Adecco Group partners with employers, candidates, colleagues and governments, sharing its labour market expertise and insights to empower people, fuel economies, and enrich societies.

The Adecco Group is a Fortune Global 500 company, based in Zurich, Switzerland, with more than 33,000 FTE employees in 60 countries and territories around the world. The Adecco Group AG is registered in Switzerland (ISIN: CH0012138605) and listed on the SIX Swiss Exchange (ADEN).

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