UK job market reaching crucial phase

Factoring and invoice discounting facilities often prove useful for recruitment agencies suffering from cashflow gaps

Employers across the UK are looking to hold onto more staff to avoid losing skills despite low levels of demand and output, new research has revealed.

The Chartered Institute of Personnel and Development’s (CIPD) Labour Market Outlook indicated that more than a third of private sector firms have kept staffing levels higher than required for the current level of output, with a desire to maintain the skills base provided by staff.

There were also fewer firms planning on make redundancies in Q3 of 2012, compared to three months ago.

However, 62% of private sector firms suggested they would be forced to lay off staff if there isn’t an improvement in output in the next year, suggesting that unemployment levels could start to increase if the economy continues to stagnate.

Labour market adviser at the CIPD, Gerwyn Davies, said of the figures: “The tenacity with which employers are hanging on to skilled labour is a reflection of the high value they place on it, and the damage they fear will be done to their businesses if they are forced to start making more redundancies”.

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