West Midlands beats national average for employment prospects

THE volatile nature of the West Midlands’ employment sector has been reflected in various economic surveys in recent weeks but latest figures from workforce specialist ManpowerGroup suggest the region has bounced back and its employment outlook is now ahead of the national average.

Manpower’s latest employment outlook survey suggests that after last quarter’s figure fell back to +5%, the figure for the current quarter has jumped by three points to +8%, overtaking the national average of +7%.
 
The survey is based on responses from 2,104 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 one of the most comprehensive surveys of its kind and is used as a key economic statistic by both the Bank of England and the Government.
 
Krissie Davies, Operations Director at Manpower, said: “The jobs outlook in the West Midlands has been in positive territory since mid-2012. Last quarter we saw a dip in confidence, but things have picked up this quarter and we are heading into 2017 with a strong Outlook, which has edged ahead of the national average.
 
“Across the region – and Birmingham in particular – the supply chain and logistics sector is booming in the run up to Christmas. We’re seeing lots of temporary vacancies in warehouses and call centres as employers prepare for the busy season. There are also plenty of jobs in this sector that are not just for Christmas. The supermarket Lidl is opening a new warehouse in the region in January, and we expect that the supply chain and logistics sector will continue to flourish.”
 
She said the last Autumn Statement highlighted that pay in the West Midlands grew faster in the past year than anywhere else in the UK, and this was helping to fuel optimism.

“It is encouraging that the positive jobs outlook for the quarter has also been driven by demand for permanent candidates across a range of roles and with a variety of skill sets – from those with sales and account management experience to healthcare professionals,” she added.
 
The +7% national picture reflects the highest level of optimism in three years. Across the country, the private sector plans to hire at its highest rate in three years (+8%), with the construction (+9%), business services (+9%) and utilities (+13%) sectors all reporting very positive outlooks.
 
Mark Cahill, ‎ManpowerGroup UK managing director, said: “UK companies are going into 2017 hungry for top talent. Employers are still unsure about what exactly Brexit will mean, but are not letting that uncertainty deter them from hiring. In fact, some employers may be looking to bring in talent while they can before any curbs to freedom of movement across the European Union come into effect, as more than half of all the jobs created by UK employers this year went to EU workers.”
 
All 12 regions of the UK reported positive outlooks for the first three months of the year, with only two regions reporting a decline in hiring optimism.

The East is the most positive region (+10%), followed by London (+9%). Yorkshire & Humberside reports the biggest increase, rising nine points to join the East Midlands, West Midlands, South West and Scotland on +8%.

In contrast, the North West (+3%) and Wales (+2%) are the only two regions to report falling outlooks, both down two points on Q4 2016.