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A recent survey has revealed positive news regarding employment growth, however, many businesses are struggling to find the talent they need to fill roles.

The latest Labour Market Outlook from the CIPD and The Adecco Group shows that employers’ near-term employment expectations have risen to a five-year high.

The quarterly survey of more than 1,000 employers suggests there will be strong growth in the demand for labour in the second quarter of 2018. During the past three months, the net employment balance – a measure of the difference between the proportion of employers who expect to increase staff levels and those who expect to decrease staff levels in Q2 2018 – increased from +16 to +26.

However, while employment growth intentions reported by employers are strong, the number of vacancies in the UK economy are still well above historic average levels. The CIPD is warning that employers’ demand for skills and labour may not be met by supply.

Gerwyn Davies, senior labour market analyst for the CIPD, the professional body for HR and people development, commented, “Employer optimism about job prospects remains extremely positive which suggests we should be cautious about putting too pessimistic an interpretation on the weak provisional GDP figures released last month. However, employers looking to expand their workforces are likely to face growing headwinds as organisations find it more difficult to source the people and skills they need.”

Almost two-thirds (61%) of employers in the CIPD/The Adecco Group survey said that at least some of their vacancies are proving hard to fill. By comparison, just over half (56%) of employers reported that they were currently having difficulty filling vacancies in their organisation during the same period in 2017. In response, more than a quarter (28%) said that they are raising wages to tackle their recruitment difficulties.

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