West Midlands jobs market wobbles on Article 50

Confidence in the West Midlands jobs market has fallen in the weeks leading up to Article 50 being triggered – although there are still reasons to be optimistic, according to a new survey.

After leaping ahead earlier this quarter, the ManpowerGroup has concluded the West Midlands Outlook has dropped three points to +5%; a figure which matches the national average this quarter.

The ManpowerGroup Employment Outlook Survey is based on responses from 2,119 UK employers. It asks whether employers intend to hire additional workers or reduce the size of their workforce in the coming quarter. It is considered the most comprehensive, forward-looking employment survey of its kind and is used as a key economic statistic by both the Bank of England and the UK government.
 
Jason Greaves, Operations Director at Manpower, said: “Although the levels of confidence in the region have wobbled this quarter, the West Midlands jobs market is built on strong foundations and there is still plenty to be optimistic about.

“In Birmingham, we’re seeing a surge in financial services roles with local companies hiring faster than in London. Many commercial businesses are starting to move out of the capital, particularly as projects like HS2 will reduce commuting times and provide better infrastructure. The new HSBC head office in Birmingham is a good example of this. Manufacturing and warehousing roles are also booming in the area.”
 
However, he said that across the West Midlands the skills shortage was getting more acute and this was forcing employers to be more creative with their recruitment.

“From personalised text messages to social media posts on Facebook, we are targeting opportunities at candidates to make sure we get the right individuals,” added Mr Greaves.

“We also have to be very transparent about the roles on offer to entice candidates from their current jobs. We are now sharing more information at a very early stage in the recruitment process. For example, sending candidates photos of the client’s office, giving information on management structures to show where individuals would fit in the company, and highlighting flexible working and benefits such as free lunches, season tickets for sports – anything that is different and will set our clients apart from competitors.”
 
Nationally, private sector hiring has dropped to its weakest level since Q1 2014. Employers in six of the nine sectors surveyed reported a falling Outlook. The overall Net Employment Outlook, which includes both public and private sector employers, has dropped two points to +5%.
 
Mark Cahill, ‎ManpowerGroup UK Managing Director, said the impending trigger of Article 50 was clearly affecting confidence in the jobs market.

“The private sector plans to hire at its slowest rate since 2014 (+4%), with only construction, manufacturing and transport and communications planning to hire at previous levels,” he said.