Strong employment growth

June 14, 2011 10:40 AM

The recovery has been distinctly lacklustre recently. Recovering from a financial crisis is hard and, as higher spending tends to mean lower growth,  an economy straining under the heavy load of spending at 46 per cent of national income was always going to struggle. Construction in particular seems to have had a hard time.

There is good news though.  We aren't facing the kind of dismal prospects that they are in the United States on employment. More people are getting jobs and businesses are planning to hire lots more over the Summer. Reuters reports that staffing firm Manpower thinks the market is holding up well and the time is right for necessary public sector job cuts:

Small and medium-sized companies plan to step up hiring over the summer, a survey by staffing firm Manpower showed, raising the chances that private firms will make up for jobs lost due to the government's spending cuts.


"We've been warned for such a long time to expect large scale public sector job cuts in central government, but in our experience that is just not happening," Mark Cahill, Managing Director of Manpower, said in a statement.


"If the government really intends to make the large-scale redundancies initially suggested, ministers must realise that the longer they wait to start this process, the harder it will eventually become," he said.


"We're now confident that job creation in the private sector, particularly among SMEs, can now fill the gap created by job losses in the public sector," he added.


Steve Hawkes at the Sun adds a quote from the stockbroker Investec:

We may be going through a soft patch in the recovery now, but employers are looking to hire.


Our relatively liberal employment laws mean that businesses feel confident to employ people as the economy recovers. If only we had the kind of supply-side reforms we need to get Government off the backs of families and businesses, a real plan for growth. Combine stronger trend growth, with a private sector that has shown it will create lots of jobs, and robust welfare reform, and everyone can enjoy more opportunities and greater prosperity. It's an exciting opportunity.The recovery has been distinctly lacklustre recently. Recovering from a financial crisis is hard and, as higher spending tends to mean lower growth,  an economy straining under the heavy load of spending at 46 per cent of national income was always going to struggle. Construction in particular seems to have had a hard time.

There is good news though.  We aren't facing the kind of dismal prospects that they are in the United States on employment. More people are getting jobs and businesses are planning to hire lots more over the Summer. Reuters reports that staffing firm Manpower thinks the market is holding up well and the time is right for necessary public sector job cuts:

Small and medium-sized companies plan to step up hiring over the summer, a survey by staffing firm Manpower showed, raising the chances that private firms will make up for jobs lost due to the government's spending cuts.


"We've been warned for such a long time to expect large scale public sector job cuts in central government, but in our experience that is just not happening," Mark Cahill, Managing Director of Manpower, said in a statement.


"If the government really intends to make the large-scale redundancies initially suggested, ministers must realise that the longer they wait to start this process, the harder it will eventually become," he said.


"We're now confident that job creation in the private sector, particularly among SMEs, can now fill the gap created by job losses in the public sector," he added.


Steve Hawkes at the Sun adds a quote from the stockbroker Investec:

We may be going through a soft patch in the recovery now, but employers are looking to hire.


Our relatively liberal employment laws mean that businesses feel confident to employ people as the economy recovers. If only we had the kind of supply-side reforms we need to get Government off the backs of families and businesses, a real plan for growth. Combine stronger trend growth, with a private sector that has shown it will create lots of jobs, and robust welfare reform, and everyone can enjoy more opportunities and greater prosperity. It's an exciting opportunity.

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