Employment levels will rise by 250,000 this year according to a review of HR prospects by people management experts, the Chartered Institute of Personnel and Development (CIPD). The CIPD argues that this presents a huge dilemma to UK organisations who are already experiencing severe recruitment difficulties - either they will have to use under-used sources of labour, such as immigrants or the jobless or face wage cost increases next year.
John Philpott, CIPD's Chief Economist, comments, "The self-employed and the public sector are likely to be the biggest winners of the jobs increase next year. While this is undoubtedly good news for business and users of public services, it promises to present an even greater challenge to public sector HR managers who already report recruitment difficulties. To meet the challenge, UK organisations should tap into under-used sources of labour - immigrants as well as jobless people, or indeed raise productivity by improving skills in the workplace, to avoid a hike in wage costs in 2004."
Philpott argues that the more balanced pattern of economic growth will also favour job creation in business services and manufacturing, although it remains doubtful in the case of the latter whether the net effect will be positive. …