Round-up of the week

Permanent and temporary job placements on the up

January saw an increase in both permanent and temporary job placements, a new survey has revealed.

According to the latest Markit/REC Report on Jobs, the rate of growth in the permanent jobs market went up last month.

This coincided with a slight slowdown in temporary and contract staff billings, although the REC remains satisfied that the jobs market has started 2016 "with a bang".

Kevin Green, chief executive of the body, commented: "Our latest data shows strong growth in demand for staff and in permanent placements. Professional service jobs are among those leading the way, with marketing and commercial roles especially in demand as businesses seek to make the most of the good economic climate."

Figures from the REC also revealed that salary growth is easing off in both the permanent and temporary jobs markets, with pay going up but at a slightly slower rate.

However, the organisation pointed out that questions regarding the upcoming EU referendum might cause uncertainty in the jobs market over the coming months.

CBI downgrades economic growth forecast

The CBI has revised its GDP growth estimates downwards. In November last year, the group estimated that 2016 would see a 2.6 per cent increase in economic output. 

However, it has now been downgraded slightly to 2.3 per cent. Similarly, its forecast for 2017 has been revised from 2.4 per cent to 2.1 per cent.

Nevertheless, the CBI still believes that the UK will remain among the fast-growing advanced economies in the world, as it has "strong fundamentals".

Carolyn Fairbairn, director-general of the body, commented: "The UK economy is expected to see decent growth this year - and in the next. It’s important to keep global economic challenges, such as recent stock market volatility, in perspective."

She went on to state that while the prospect of an EU referendum is not negatively affecting business investment, concerns over China and emerging markets remain "a potential risk to the UK's solid economic outlook".

Rain Newton-Smith, director for economics at the CBI, added that the UK has "largely remained resilient amid recent global turbulence" and has a "sound economic footing at home".

This, she said, has been driven by strong business investment and job creation, as well as low inflation supporting household spending.

Ms Newton-Smith pointed out that with slower growth in GDP and wage growth easing off, interest rates in the UK are unlikely to be altered until the end of this year.

Millennials 'are the most demanding employees'

The millennial generation are the most demanding people in the workplace, a new study has found.

According to Cascade HR, 63 per cent of bosses believe workers in this group require more guidance and support from their managers.

Meanwhile, almost half agreed that millennials need detailed targets and frequent progress meetings to remain motivated at work. 

Nevertheless, many did not dismiss this as a bad thing and cited it as a sign that they are extremely driven when it comes to their careers.

Oliver Shaw, chief executive of Cascade HR, commented: "As a typically well-educated generation, personal development is really important to them and so the use of set targets and frequent praise helps to reinforce that they’re doing a good job."

He added that since the modern office has become a very diverse working environment, employers must "gain a better understanding of what makes each generation tick" so they can retain and motivate the best people.

To discuss conditions in the labour market and operating environment further, speak to one of our experts here at The Maine Group!