UK Hiring At Fastest Rate

Firms Are Planning To Increase Their Headcounts In The Coming Months


Fergal Dowling, Partner | +44 (0)121 214 5476

Companies in the UK are planning to hire more employees to match growth prospects, according to a new report.

BDO - an accounting firm - released its Business Trends study this week and found that hiring intentions rose from 108.8 in June to 109.6 in July. Any figure over 100 indicates growth.

This will come as good news for graduates leaving university in 2014, as an increase in vacancies may help alleviate the heightened levels of unemployment seen among this group since the start of the recession in 2008.

Economy-wide output among service companies was also found to have risen in the study, with production rising from 103.6 in June to 103.7 in July.

Peter Geminton, partner at BDO, said: "The good news is that the unprecedented growth we've seen in UK employment this year looks set to continue, providing this year's university graduates with a welcome dose of good news in terms of job and salary prospects.

"However, we're hearing that services firms are beginning to echo manufacturers in voicing their concerns over a shortage of skilled workers."

Much of the growth seen in the service sector over the last few months has been driven by the hospitality industry, which has seen healthy profits in recent years.

In July, BDO revealed that room yields had risen by 7.2 per cent across the UK to an average of £50.05, while median rates had also increased to £63.17.

London and Manchester's hoteliers have reported particularly high occupancy rates in recent months, but those in the capital and the north-western hub have enjoyed particularly positive results in the face of a growing economy.

But despite repeated strong service sector results, analysts are concerned that an inflated housing market, as well as geopolitical uncertainty in the Middle East and eastern Europe, could cause damage to the UK economy.

Expert Opinion
This is the latest in a number of recent studies to suggest that businesses of all sizes are looking to increase their workforce in the coming months. While this is undoubtedly a positive step forward for many employers, it is vital that they recognise their core responsibilities when it comes to recruitment and ensuring the successful integration of new members of staff into their working environment.

"Central to this is ensuring that contracts meet all necessary legal requirements, as well as guaranteeing that policies are introduced which ensure that workers are given full information regarding what is expected of them during work. Such steps are incredibly important to ensuring a smooth transition and introduction for new workers, as well as to ensure that businesses have taken the necessary steps to avoid potential legal issues further down the road."
Fergal Dowling, Partner