Recruiting now
More signs of recovery: information services provider Experian has reported that in August businesses failed less than at any time since September 2008. Although business insolvencies were up 11.3% on August 2008, the total number of insolvencies in August was down 23% on the previous month.
Fear of failure, however, does not stand in the way of a significant percentage of Brits dreaming of running their own businesses. According to a survey recently released by ACCA, 60% of Britons want to be their own boss, whilst 75% of 25-34 year olds harbour entrepreneurial ambitions and want to run their own companies one day. Glen Collins of ACCA commented "...this entrepreneurial attitude bodes extremely well for the next generation of business leaders."
Whether or not now is a good time to launch a new venture is remains to be seen. The CBI is forecasting modest growth in the 3rd and 4th quarters of 2009, with small rises (0.3% and 0.4% respectively) in GDP in Q3 and Q4. Some commentators feel that this growth may arise as a result of two unsustainable or false boosts: firstly, companies are being forced to restock having cut inventories in the early stages of the downturn; and secondly consumers may bring forward spending before VAT rises at the start of 2010. Richard Lambert of the CBI commented that "the outlook is improving as the UK draws strength from quantitative easing, a weak pound and a recovering global economy" and whilst growth this quarter should mark the end of recession, "conditions in the UK will remain tough for some time yet, and it is difficult to see where demand growth will come from."
Graduates received better news last week when the Association of Graduate Recruiters reported in a survey that 76.4% of respondents expect their graduate recruitment to either stay as or increase upon 2009 levels.
There is also some cause for optimism in the services sector, which includes accountancy firms. The Chartered Institute of Purchasing and Supply (CIPS) this week published its monthly Purchasing Managers' Index which registered an uplift in demand and confidence amongst buyers, which moved the index to 55.3, well above the neutral 50 mark and up on last month's 54.1. David Noble, the CEO at CIPS, issued a bullish statement, commenting that although not all areas within the services sector are experiencing growth, "...it's likely we'll see growth gain momentum over the coming months."
Optimism regarding the economy was tempered by a number of disappointing job related news items this week. The Guardian reported on Tuesday that the CBI is forecasting that as many as 60,000 jobs will be lost in financial services this year and these losses will continue into 2010 along with uncertainty about the banking system.
Leading recruitment company Hays this week revealed that net fees were down by 40% in Q3, compared with the same quarter last year. Despite seeing signs of stability in the UK and Asia Pacific, Chief Exec Alistair Cox has noted "no indications of recovery in either market." In a similar vein, financial recruiter Michael Page recorded a 45% drop in Q3 gross profit, whilst also remarking upon signs of stability. International specialists Robert Walters fared a little better, announcing a drop of 29% in net fees in the third quarter, compared with 2008, whilst identifying signs of improvement in some sectors, such as banking.
Recruitment Consultant magazine offered more positive news for jobseekers in the financial job market when it reported Giant Group's survey of accountants working within investment banking. 15.7% of contractors believe that fund management and investment banking will provide most of their contracting opportunities within the next 12 months, up from 9.4% last year.
Financial recruitment agency Badenoch and Clark has also been able to deliver some positive news with the results of recent research: 27% of workers are now confident enough to look for a new position, whilst 40% of employees in London feel ready to move.
The general job market has received a possible boost from the Conservative party, which this week unveiled a number of policies aimed at getting Britain back to work, not least the much trumpeted green deal which was part of an energy and climate change package that could see the creation of up to 70,000 skilled jobs.
However, not all Brits can wait: Global Visas has reported a 123% rise in Britons seeking a new life down under. And who can blame them as long dark nights and winter approach us?