BRITISH employers plan to increase staff numbers by the most in more than eight years over the coming months and few intend to make staff redundant when government furlough support ends next month, a survey showed yesterday.

The quarterly survey by Britain’s Chartered Institute of Personnel and Development (CIPD) added to signs of labor market shortages as the economy emerges from the coronavirus pandemic, though it offered less evidence of wage or inflation pressures

The CIPD said the net employment intentions balance, the difference in percentage points between employers who are hiring and those cutting staff, rose to +32 from +27 three months earlier, its highest since the survey began in early 2013.

“Employers are very optimistic, indicating strong recruitment intentions, and redundancy expectations appear much lower than originally predicted during the pandemic,” said Jonathan Boys, labor market economist at CIPD.

Only 13 percent of employers plan to make staff redundant, down from 33 percent a year ago when there were much greater fears that a premature end to government furlough support would create a spike in unemployment.

Earlier this month, the Bank of England forecast that the unemployment rate would not rise beyond its current 4.8 percent, much lower than the peak of around 7.5 percent it saw earlier.

The CIPD survey also showed staff shortages, especially in the hospitality sector where many employers shed staff during the pandemic due to lengthy closures of hotels, pubs, restaurants and other venues. (SD-Agencies)