Results from the latest Manpower Employment Outlook survey suggest that there is a North/South divide among UK employers when it comes to hiring confidence.
The line runs from the Bristol Channel to the Humber. Employers located in areas below the line are broadly positive about their recruitment intentions, whilst their counterparts above the line record negative hiring intentions.
The seasonally adjusted Net Employment Outlook for Q4 fell for the first time in nearly 3 years to +2. The utilities sector is the most positive with employers registering +10 when it comes to hiring intentions.
However, finance and business services fell back to +6 after recording +16 in the second quarter of the year.
Mark Cahill, the MD of Manpower UK, said the finance sector began the year strongly, but since the summer, nearly 50,000 jobs have been lost in banking. It is still possible to find opportunities in retail banking, but in other areas the reins have been pulled in and this is impacting the entire jobs market.
Although the Manpower report paints a gloomy picture for businesses in the North, the Bank of Scotland reports that business activity north of the border expanded solidly last month.
The Bank’s PMI reported that manufacturing production rose at its sharpest rate for four months. The service sector also grew, although the rate of growth has slowed since the summer.
Donald MacRae, the Bank of Scotland’s chief economist, said the resilient Scottish economy continued to show positive signs. Scotland has now experienced eight consecutive months of growth and the PMI Output Index north of the border ranks second to London.
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Image: finish line by Sean MacEntee
