The CIPD, in partnership with The Adecco Group UK & Ireland, and working with YouGov, has collected and interpreted data from the Labour Market Outlook (LMO) survey to provide additional insight across various UK nations and regions. We look at how this compares with the broader UK picture on pertinent workplace and labour market issues.
About the Adecco Group UK and Ireland
The Adecco Group UK&I and its brands are part of the Adecco Group, the world’s leading HR solutions partner. As a Group, we provide more than 700,000 people with permanent and flexible employment every day. With more than 34,000 employees in 60 countries – 3,100 in the UK&I – we transform the world of work one job at a time. Our colleagues serve more than 100,000 organisations with the talent, HR services and cutting-edge technology they need to succeed in an ever-changing global economy. As a Fortune Global 500 company, we lead by example, creating shared value that meets social needs while driving business innovation. Our culture of inclusivity, fairness and teamwork empowers individuals and organisations, fuels economies, and builds better societies. These values resonate with our employees, who voted us number 5 on the Great Place to Work® - World’s Best Workplaces 2018 list. We make the future work for everyone.
The Adecco Group is based in Zurich, Switzerland. Adecco Group AG is registered in Switzerland (ISIN: CH0012138605) and listed on the SIX Swiss Exchange (ADEN). The Group is powered by nine lead brands: Adecco, Modis, Badenoch & Clark, Spring Professional, Lee Hecht Harrison, Pontoon, Adia, General Assembly and YOSS.
The Adecco Group UK&I’s head office is located in London, UK. We have 11 brands, including the Adecco Group UK&I, Adecco, Adia, Ajilon, Badenoch & Clark, Modis, Office Angels, Penna, Pontoon, Roevin and Spring.
The Summer 2018 Labour Market Outlook is based on survey responses from 2,001 employers across the UK. This survey has been extended to include data and analysis from the UK nations and regions. In addition to providing a general picture of market trends, the findings will also have important significance for employers and HR.
For the first time, the CIPD has created dedicated guidance to accompany the report, with recommendations on how to frame a practice response to best capture surfacing opportunities and mitigate potential risks.
Download the report and practitioners' guide below:
UK Nations and regions insights
Watch Dr John McGurk, CIPD Head of Policy and Insights: UK Nations and Regions, provide analysis of the last quarter's labour market and employment indicators and discuss the different implications for the UK nations and regions.
Read the transcript
Dr John McGurk: "Pay generally is not rising at the levels that people predicted and expected but that within the nations and regions themselves there's a higher propensity to pay more in Scotland, for example. But you know that isn't a devolved nation issue because if you look at Wales you know it has a much lower level of median pay and that's part of a story of Wales having depressed pay expectations and depressed pay over a long period of time.
The most interesting trend overall is the fact that a lot of people are sitting on the fence - they're not making a decision and that's down to Brexit uncertainty, and it's down to other types of uncertainty that are around product markets, in particular the impact of technology.
Recruitment is fairly healthy all over - three-fifths of organisations intend to recruit - but the outlook is increasingly challenging because there's been a big fall off in EU migration, a challenge around an ageing workforce - there are less young people in the labour market - so it's a real challenge.
There's a big challenge around those low-scale vacancies or vacancies which are sometimes probably mislabeled as low skilled, and service and retail roles and various aspects of customer service, roles in distribution etc - these roles are increasingly hard to fill in many nations and regions, as well as nationally, and especially in economies of London and the South East, which have quite a low level of unemployment and quite a low level of housing mobility. You can't really move as easily to London as you can move to say Newcastle or Sunderland or Glasgow so those are big challenges in terms of the amount of labour available.
About a fifth of employers nationally are saying that they'll be declaring redundancies within the next 3 months - in the North of England (less likely to be in the South) and then in Scotland and Wales and also, interestingly, in London and we can talk about the reasons for that.
They're down to different aspects of the the labour market. For example, the London labour market is particularly vibrant and there's a lot of churn in the London. Labour market firms make quite quick and rapid decisions about moving into and out of different markets. It's the same in the North West of England where there's a lot of investment going on around the so-called northern powerhouse and a lot of employment but that also leads to a lot of displacement of current employment and shifts into other types of employment. In the North East, it's much more about long term unemployment in declining industries not actually adapting quick enough and also the challenge of Brexit. There's a lot of uncertainty which tends to effect investment in jobs. It takes a lot of good practice from the nations and regions. In Scotland, for example, a government actually takes a proactive role in anticipating redundancies and you can do that on a smaller national and regional basis. But increasingly, because regionalisation is a factor in the UK economy it means that in places like the North West, the North East, and around London etc Government can work with employers to anticipate, when possible, changes in the market, possible changes in demand, and can help to mitigate that. And because there are a lot of employers looking for employees we can help to shift people into jobs which they are appropriate for. So when firms, for example in engineering, are going into administration, the Scottish government is trying to help transition quite often, with quite a lot of success, a lot of the employees into growing sectors at the time like construction and parts of the oil and gas industry that were growing in decommissioning. And the Welsh government has got a similar approach, so there's a lot that can be done by Government.
But for practitioners in the HR area we can start to look at the future of the industries that we're in and we can start to get involved in conversations about what are the likely changes in the product market - the kind of stuff that your company produces and makes and sells and how that may affect the skills in your organisation and that's quite a big challenge, but it's something that we at the CIPD think that increasingly is something that needs to be at least not owned but contributed to by HR working with various other departments."
Daphne Doody, Head of CIPD Northern England, highlights the key figures from the CIPD and The Adecco Group’s Summer 2018 Labour Market Outlook, explaining their implications for HR and employers in the North of England.
Read the transcript
Daphne Doody: "The CIPD's Labour Market Outlook has revealed some distinctive recruitment and redundancy trends in the North of England. These will have particular implications for the region with some challenges and opportunities.
Employees in the North East of England were more likely to make redundancies in the next three months than in any other area of the country. A significant portion also anticipates a decrease in staff levels.In the North West there is a contrasting picture. Nearly half of employers say that they have vacancies that are hard to fill, almost 10 percent more than the rest of the UK.
For the North East if cost saving is a priority, consider alternatives including redeployment or reduced hours. Where redundancies are unavoidable focus on staff morale and keeping communications open and plan for certain tasks to be divvied out. Firms at the other end of the spectrum may see a chance to snap up skilled workers but they must be prepared to take a broader view of transferable skills.
For the North West, where filling vacancies is key, explore options besides raising starting salaries to distinguish your brand. Tailor your value proposition to suit different employee segments, offer flexible working, breadth of experience development and non-financial benefits.
The CIPD has committed to providing research and insights and practical support for its members for more details visit cipd.co.uk."
Explore our related content
The CIPD Good Work Index provides an annual snapshot of job quality in the UK, giving insight to drive improvement to working lives
As developments in the Brexit process continue to emerge, the CIPD will continue to provide news and updated resources to support your planning
Explore the CIPD’s annual survey exploring health, well-being and absence in UK workplaces – the twentieth of its kind, and the tenth in partnership with Simplyhealth
We are engaged in promoting a wider skills agenda across Scotland and addressing some of the key labour market and skills policy issues faced by organisations
Collaborate, network and learn with likeminded HR and L&D peers in your area
Northern Area Partnership
A voluntary partnership of the ten northern England branches providing services to around 24,000 members.