Firms struggle in tight jobs market
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Your support makes all the difference.THE TIGHT jobs market is making it hard for employers to recruit and retain workers because of growing confidence in job opportunities, says an annual survey published today.
The fresh evidence of job market pressure comes ahead of this week's Monetary Policy Committee meeting. Most economists think the next interest- rate rise will not take place until the new year, but do not rule out an increase on Thursday.
Today's survey from the Institute of Personnel and Development reports that more than one in three skilled manual workers and sales staff moved jobs in 1998. Turnover among professionals, such as lawyers and accountants, rose to more than one in four. "The latest figures reveal a tightening labour market which has encouraged key groups to seek new job opportunities during the course of last year," said Oonagh Ryden, the IPD's adviser on pay.
"The state of the labour market is encouraging for many groups of workers, who clearly feel more confident about future job opportunities," she said.
The overall turnover rate climbed to 20.6 per cent from 19.8 per cent the previous year. Nearly half the businesses surveyed complained of difficulty in recruiting professionals, with the average delay in filling a vacancy typically 14 weeks. The cost of replacing professionals ranged from pounds 3,600 to pounds 5,000. Ms Ryden said: "Such major hot spots in the jobs market signal worries for the MPC."
The IPD survey of 706 companies with 1.2 million employees adds to the evidence of growing inflationary pressures in the jobs market. But the signals have been mixed, with prices on the high street lower than expected.
Official figures on manufacturing output and the British Retail Consortium's monthly survey, due today, will be the last evidence before the MPC meets on Wednesday and Thursday.
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