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UK employment remains at 'sky-high' levels

Posted on 14/04/2015 by

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Bosses in the UK intend on hiring more staff although concerns remain about the country’s failure to raise productivity, a new report has warned.

BDO’s latest Business Trends Report revealed that there was an employment index reading of 113.0 for March and also indicated that companies were likely to keep creating jobs.

This reading was similar to February’s figure and well over the 100 level that indicates growth above the long-term trend.

"The hiring intentions of UK firms are at 'sky-high' levels with figures stronger than the heady days of the mid-2000s boom," BDO stated.
The national unemployment figures fell by 102,000 to 1.86m in the three months to January, with the unemployment rate at 5.7%, according to official figures.

The report's optimism index showed that business confidence remained well above the 100 mark but it also revealed the static level of British employees’ output per hour, a situation deemed “unique amongst advanced economies”.

Figures from the Office for National Statistics prove that productivity has not increased since 2007, a revelation which was unprecedented in the post-war period.

The weakness has left economists perplexed and been described as a major risk to growth by the International Monetary Fund.

BDO Partner, Peter Hemington, believes that the UK’s continuing poor labour productivity performance was a significant concern.
He said: “Although employment growth in recent years has been strong, much of this has been in part-time jobs. Productivity ultimately determines our prosperity so it is a crucial area that must be addressed. Policy makers of all persuasions must take on this productivity puzzle.”

 

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