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CIPD forecasts continued rise in employment

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CIPD forecasts continued rise in employment

Following the news that the jobless total fell to 2.5 million in December, the latest Labour Market Outlook (LMO) report published by the Chartered Institute of Personnel and Development (CIPD). SuccessFactors forecast that employment will continue to rise in the first quarter of 2013.

The prediction was based on the findings of research which found that a higher proportion of employers plan on increasing staff levels than decreasing them in the coming months, with conditions in the private sector looking particularly promising.

This is the fourth consecutive quarter that the LMO report has discovered a positive balance in the number of firms expecting to hire workers rather than introduce job cuts, and this has been matched by "robust" growth in employment during 2012.

Indeed, despite a stall in economic activity, the study explains that the rise in the number of part-time and temporary workers has helped to drive down the jobless total - and it is expected this will continue throughout the current quarter.

"Growth in employment looks set to continue in the short-term, despite faltering economic growth," explained Gerwyn Davies, labour market adviser at the CIPD.

"While muted pay growth is playing a part, we also see continued evidence that employers are reluctant to lay-off skilled workers.

"The truth is that employers have learnt lessons of the past, where overly quick steps to cut staff led to a loss of talent and damaged the capacity of organisations to recover."

With employers expected to hire more staff as the jobs market improves, businesses will need to ensure they've got the infrastructure available to support a larger workforce.

Whether that means expanding their office space or investing in new commercial properties, it's vital that companies are prepared to take full advantage of employing more staff.

And as the country continues to avoid recession, improved economic conditions could also make it likely that an increasing number of employers look to hire in the future as the recovery begins to gather pace.


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