Economic recovery to create half a million new UK jobs, says Survey
GROWING confidence in the economic recovery has led to the sharpest rise in companies’ recruitment plans for six years, with small firms alone set to create 660,000 new jobs, according to a string of key surveys out today.
The above-trend growth we’re seeing in businesses’ hiring intentions bodes well for George Osborne ahead of the election.
The monthly Business Trends Report by accountants BDO, pulling together the findings of all the major UK business studies, showed output in March rose by the second fastest pace on record with employment prospects at the highest since 2008.
BDO partner Peter Hemington said: “After a difficult few years, the above-trend growth we’re seeing in businesses’ hiring intentions bodes well for George Osborne ahead of the election. The Chancellor cannily qualified his recent pledge to create a “full employment” economy. But with growth strongly on track and employment levels rising, he may be able to claim success sooner than expected.”
A study of small and medium sized firms (SMEs) by commercial finance provider GE Capital showed they planned to take on 660,000 new staff in the coming year, 26 per cent more than at the same time last year.
It also showed confidence among SMEs stronger than anywhere in Europe, including Germany.
GE Capital UK chief Ilaria del Beato said: UK SMEs appear to have reached a crucial tipping point in their willingness to invest for growth and hire new staff.”
The studies come ahead of this week’s Bank of England interest rates decision when governor Mark Carney and his colleagues are almost certain to leave policy unchanged for the 21st meeting in a row. Although there are growing signs of the economy picking up, there is nothing to suggest a change under the broad “forward guidance” policy set out by Carney.
A poll of 126 company finance chiefs (CFOs) by accountant Deloitte showed 81 per cent expecting a rise in recruitment and 80 per cent predicting increased investment.
A record 95 per cent expected to see an increase in takeover and merger activity this year, while the proportion feeling more optimistic about prospects was close to a four-year high.
Deloitte chief economist Ian Stewart said: “The default position of large corporates in the past six years – bullish on emerging markets, cautious on developed markets – seems to be reversing. CFOs are now more confident about growth in developed economies, particularly the UK.
