According to a KPMG report there is a skills
shortage that may stall the government’s plans for jobs
growth
Skills shortages could be the reason why
permanent job creation in the north is slow. The report on jobs for
the north was based on a survey of recruitment and employment
consultants in the region to show the latest labour market
trends.
Although recruitment agencies saw an increase in the
amount of people they placed into permanent jobs, it was still
below the national average for jobs growth. The Midlands and South
of England still remain the strongest whereas London saw a strong
decline.
Jonathan Hurst, Manchester-based northern
chairman at KPMG, said: “The north’s broad based economy sees the
regional job market hold its own in the context of stuttering
macroeconomic data; no more, no less.
“While it’s difficult to read too much into
this, our report suggests the north could be suffering the effects
of skills mismatches given recruitment consultants in this region
have noted skills shortages in the manufacturing and IT
sectors.
“It is to be hoped that this does not prove to hold back economic
growth in the longer term.”
With average starting salaries increasing
slightly in March many companies are keeping a tight reign on their
budgets. Attracting the right graduates has become a main priority, yet
because of current unemployment companies are able to pick from a
larger pool of graduates.
Tom Hadley, director of policy and
professional services for the Recruitment and Employment
Confederation (REC) commented that the tax changes announced in the
Budget, along with the new Youth Contract and a reduction in the
amount of red tape encountered by businesses should further boost
employer confidence and accelerate recruitment activity.
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