UK Economy Contracted This Year – What It Means To The HR Market.

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With all the recent news from the Autumn Statement it is clear that UK business will continue to be in for a challenging few years ahead. The Chancellor has predicted that this period of austerity will be with us until 2018. It is then that the current government hopes to balance the country’s books. What is apparent is that companies have to continue to determine their strategy around consolidation and determining the risks of expansion. Again we are experiencing more redundancies occurring within the HR market and with bonuses and pay increases becoming rare. What is interesting to see though is that more candidates are willing to make lateral moves in salary to now improve their skills and gain broader industry sector exposure.

According to the Office for Budget Responsibility (OBR), the independent body that makes economic forecasts for the government. They predict that overall the UK economy will have contracted by 0.1%. It is a big revision from the time of the Budget in March, when it said that the economy would grow 0.8% this year. Also, debt will not fall as a proportion of the country’s output until 2016-17, a year later than hoped. Also with growth forecasts for the next five years cut it is important for candidates to take a very realistic approach on how to develop their careers. Companies are being pickier than ever on who they bring on board and therefore candidates need to determine whether the opportunity and skills that they will gain will develop their careers in the right direction rather than seeing increases in remuneration as a measuring tool for career progression.

Even though there was good news on unemployment, with the OBR cutting its forecast for the peak jobless rate from 8.7% to 8.3% and its forecast for the unemployment rate this year to 8.0% from 8.7%, the coming years will be challenging for candidates. Future unemployment rate forecasts have been reduced for 2013, now 8.2%, down from the previous prediction of 8.6%, but the outlook is still going to be challenging for all. If you would like some advice on how to develop your HR career then please do contact the team at Grafton Haymes, as we would be happy to help.

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