Half of UK businesses are planning to expand their workforce next year according to a survey conducted but the CBI. The survey found that all regions of the UK are expected to expand their workforce with more permanent jobs being created than temporary ones. Prospects for young people are better than seen in the last year. The CBI questioned 300 firms who collectively employ 1.25 million. However there was warnings from the business lobby group stating that a skills gap could prevent some of these new jobs being filled. Also concern was expressed about new regulation damaging further job creation.
It is anticipated that wage rises will come in 2015 however this will be at a cautious rate. Recent data from the Office for National Statistics (ONS) showed that average earnings had risen 1.6 per cent compared to the previous year and unemployment had fallen 63,000 to 1.96 million. CBI’s deputy director general, Katja Hall, described the UK’s growing skills gap as the number one threat to the long-term health of the economy. Stating that companies and the government need to work together to find ways to develop skills within the workforce.