According to international staffing agency Randstad, unemployment is getting worse, with steel company Corus reporting 3,500 job losses this morning, but 55% of HR decision-makers claim to be experiencing skills shortages. Almost half (46%) of employers plan to make cutbacks in the near future, with 22% planning to cut their employee numbers by 10%.
Junior members of staff are expected to bear the brunt of the layoffs with 25% of employers intending to cut the number of staff with two to five years' experience. But a third of organisations expect their skills shortages to get worse over the next two years.
Kevin Green, chief executive of the Recruitment and Employment Confederation (REC), said: "The report underlines the important fact that - even in the current climate and with an increasing number of jobseekers - accessing the right skills remains a challenge for employers.
Three quarters of employers said salary reduction would be the least popular cost-cutting option and only 8% plan to reduce the working week for some employees.
Fred van der Tang, managing director at Randstad UK Professional Services, said: "In such immensely difficult times, it is encouraging many HR heads say their boards want to ensure they do not make inappropriate cuts. Cutting back too heavily was a mistake made by many employers during previous downturns, leaving them poorly prepared for the upturn."
HR leaders don't think Labour can cut it in recession
Less than one in five (17%) HR professionals think the Labour party is best placed to resolve the recession issue, compared with 38% who think the Conservatives are a better option.
