Against the backdrop of low unemployment and rising recruitment pressures, UK employers are increasingly turning to young talent to fill their skills gaps, signalling the end of a broadly ‘bleak’ decade for young jobseekers and giving a boost to the thousands of young people who are entering the jobs market for the first time this summer.
This is according to the latest Labour Market Outlook from the CIPD, the professional body for HR and people development, which shows that the proportion of employers that say they plan to hire more apprentices and school-leavers has increased sharply in response to recruitment difficulties since spring 2014. Up-skilling for all employees remains the most prevalent employer response to recruitment difficulties, cited by half of employers (50%) but a third (33%) of employers currently reporting hard-to-fill vacancies plan to hire more apprentices, a marked increase compared with just 22% in the spring 2014 report. Around a quarter (26%) predict recruiting more graduates and twelve per cent plan to hire more school leavers, up by a third compared with the spring 2014 report (9%). The findings help explain the latest ONS data which shows that the employment rate for 16-24 year olds that aren’t in full-time education has risen to a level last seen in 2008 (74.3%).
Gerwyn Davies, Labour Market Analyst for the CIPD, comments:
Pay becomes polarised
While prospects for young people have improved, the CIPD’s report highlights an increasingly polarised picture for wages. It shows a continuation of the clear gap that exists between workers that have comfortably exceeded the current inflation rate in their pay packets, those who have received modest increases or none at all, and the majority of workers who exist in the middle.
Employer confidence continues
The Labour Market Outlook also suggests that employment confidence looks to remain strong over the next three months. This quarter’s net employment balance – which measures the difference between the proportion of employers who expect to increase and those that intend to decrease staff levels – has increased to +29, up from the +24 reported in Spring 2015.