British employers plan to increase staff numbers by the most in more than eight years over the coming months and few intend to make staff redundant when government furlough support ends next month, a survey showed on Monday.
The quarterly survey by Britain's Chartered Institute of Personnel and Development added to signs of labour market shortages as the economy emerges from the coronavirus pandemic, though it offered less evidence of wage or inflation pressures
"Employers are very optimistic, indicating strong recruitment intentions, and redundancy expectations appear much lower than originally predicted during the pandemic," Jonathan Boys, labour market economist at CIPD, said. Earlier this month the Bank of England forecast that the unemployment rate would not rise beyond its current 4.8%, much lower than the peak of around 7.5% it saw earlier.The CIPD survey also showed staff shortages, especially in the hospitality sector where many employers shed staff during the pandemic due to lengthy closures of hotels, pubs, restaurants and other venues.
Raising pay was not generally seen as the solution to staff shortages either. Only 23% of employers with hard-to-fill vacancies said they would raise wages, compared with 44% who aimed to train existing staff to fill these roles.
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