2018.05.1402:12:00UTC+00UK Employers' Near-Term Employment Expectations At 5-Year High: CIPD

UK employers' near-term employment expectations rose to a five-year high, according to the labor market outlook from the Chartered Institute of Personnel and Development and the Adecco Group.

Employers reported an increase in demand for labor, making it harder for them to find the skill and labor they need. The tightening labor market also raised wage pressures.

Median basic pay award expectations for the next 12 months remained unchanged at 2 percent, but average basic pay expectations climbed to 2.1 percent over the last quarter from 1.8 percent.

The survey showed that there will be strong growth in the demand for labor in the second quarter.

In the last 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 second quarter of 2018 - increased to +26 from +16.

"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," Gerwyn Davies, senior labour market analyst for the CIPD, said.

"Employers need to think more creatively about their workforce planning and talent pipelines to ensure that they can continue to access and develop key skills," Davies added.