With yesterday’s budget came the news that the UK economy will grow more slowly this year than previously forecast. This was made very clear by the Chancellor in his speech, and for many will not come as a major surprise.
The independent Office for Budget Responsibility (OBR) forecast 1.7% growth in 2011, compared with its previous estimate of the 2.1%. This is more in line with market analysts’ forecasts. Mr Osborne stated that the downgrade was due to slower growth at the end of last year, higher commodity prices and higher-than-expected inflation. The Chancellor also announced that growth next year would be 2.5%, compared with the previous forecast of 2.6%, and 2.9% in 2013, in line with the last estimate.
Already this year we have seen the same tentative approach by organisations in their recruitment strategies as in 2010, and also the lack of confidence in candidates making the proactive move in their careers. So will this compound the issue even more in the recruitment market? We would like to hear your thoughts on how this and the wider Budget will impact your recruitment strategies for 20011.