Employers in the UK plan to keep hiring more staff, but concerns remain about the country's failure to raise productivity, a new report has warned.
The latest Business Trends Report by accountants and business advisers BDO LLP gave an employment index reading of 113.0 for March - well above the 100 level that indicates growth above the long-term trend.
The confidence in the UK Jobs Market is also backed up by the REC latest JobsOutlook for March 2015 which found that 9 out of 10 employers plan to retain or increase their permanent workforce – 92% over the short term and 97% over the medium term.
The hiring intentions of UK firms are at 'sky-high' levels with figures stronger than the heady days of the mid-2000s boom," BDO said.
However it also highlighted the static level of British workers' output per hour, a situation "unique amongst advanced economies". The UK continues its puzzling failure to increase productivity, despite continuing strong economic expansion. Recent Office for National Statistics figures showed that productivity has not increased since 2007.
British workers' output per hour has been static during the last two years of the recovery. Such a long period of flat productivity is unprecedented in the period since World War II and the trend is unique amongst advanced economies.
BDO partner Peter Hemington said the UK's continuing poor labour productivity performance was a significant concern, "Although employment growth in recent years has been strong, much of this has been in part-time jobs," he said.
"Productivity ultimately determines our prosperity so it is a crucial area that must be addressed. Policy makers of all persuasions must take on this productivity puzzle"
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Article Source: http://www.bdo.co.uk/press/hiring-intentions-strong-but-uk-productivity-puzzle-continues