Jobs growth continues yet may be hindered by a skills shortage

According to a KPMG report there is a skills shortage that may stall the government’s plans for jobs growth.

Skills shortages could be the reason why permanent job creation in the north is slow. The report on jobs for the north was based on a survey of recruitment and employment consultants in the region to show the latest labour market trends.

Although recruitment agencies saw an increase in the amount of people they placed into permanent jobs, it was still below the national average for jobs growth. The Midlands and South of England still remain the strongest whereas London saw a strong decline.

Jonathan Hurst, Manchester-based northern chairman at KPMG, said: “The north’s broad based economy sees the regional job market hold its own in the context of stuttering macroeconomic data; no more, no less.

“While it’s difficult to read too much into this, our report suggests the north could be suffering the effects of skills mismatches given recruitment consultants in this region have noted skills shortages in the manufacturing and IT sectors.
“It is to be hoped that this does not prove to hold back economic growth in the longer term.”

With average starting salaries increasing slightly in March many companies are keeping a tight reign on their budgets. Attracting the right graduates has become a main priority, yet because of current unemployment companies are able to pick from a larger pool of graduates.

Tom Hadley, director of policy and professional services for the Recruitment and Employment Confederation (REC) commented that the tax changes announced in the Budget, along with the new Youth Contract and a reduction in the amount of red tape encountered by businesses should further boost employer confidence and accelerate recruitment activity.

Source: Pareto.co.uk, Friday 13th April 2012