A new survey conducted by the Confederation of British Industry (CBI) is predicting a boost in employment in “almost every part” of the private sector.
According to the research, 41 per cent of companies surveyed expect to hire new staff in 2017, compared with just 13 per cent who believe employee numbers will reduce.
The CBI questioned 353 large and small businesses which between them employ almost 1.2 million people.
The findings revealed that science, IT and the construction sectors are most likely to lead the boom in job creation.
The survey also appears to contradict the Treasury’s warning that Brexit could lead to around half a million job losses.
Josh Hardie, deputy director of the CBI, said the UK’s chronic skills shortage remained one of the “biggest worries for the future”, as well as access to “highly skilled migrants” if the UK limits immigration from the EU after Brexit.
The CBI also examined wages and found that although more companies expect to increase pay this year in line with inflation compared to the previous year, the introduction of a higher minimum wage could potentially damage future investment.
The research revealed that 41 per cent of employers expected to absorb costs, a quarter stated that they would increase prices to pay for a wage increase, whilst 16 per cent suggested they would make overall pay and benefits packages less attractive.
“For any business planning to take on new workers in 2017, it is a good idea to start the New Year with an employment law review. Now is the time to dust off your job application templates, employee handbooks, workplace risk assessments and social media policies to ensure that everything is both compliant with the law and fit for purpose.
“A quick check to make sure that all your employment procedures are in order could save you a lot of time and money not to mention a possible employment tribunal, at a later stage.”
For advice and support on NMW compliance and all aspects of employment law affecting employers, please contact us.