4th Quarter 2001 - Labour Market
Accompanying the slowdown in growth of the workforce in the fourth quarter, and the anticipated slight decline in employment in the first three months of 2002, the FMB survey's labour supply question has this time recorded a fall in the proportion indicating difficulty in obtaining supplies of labour, to 63% for the whole UK, compared with 75% last time and 71% in the first and second quarter 2001 surveys.
As shown in Table 9, there is a relatively larger drop in the proportion reporting difficulty recruiting direct employees, which for the UK is 11 percentage points lower than last time, and below 50% for the first time in a year, than in that indicating difficulty finding people to work as sub-contractors, which has fallen only four points.
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The relatively small reduction in the overall proportion indicating difficulty in obtaining sub-contractors may be linked to a rise in the figure for problems finding plumbers and heating and ventilation engineers to work in that capacity, which is the highest for any occupation this time.
Where other occupations are concerned, the results for which are not reported in Table 9, it was noted last time that there was an increase in the proportions reporting difficulty obtaining roofers, and they are relatively high again this time, at 9% of all respondents both for direct employees and for sub-contractors. One or other proportion for roofers is over 10% in six regions, the highest figures being recorded in London, at 15% for direct employees and 32% for sub-contractors.
Other occupations that show up this time are painters to work as direct employees, the UK figure for which is 7%, and electricians to work as sub-contractors, cited by 9% of all respondents.
For this question also there are substantial variations in the regional results. Focussing on the proportions indicating difficulty in obtaining supplies of labour, without distinguishing between recruitment of direct employees and hiring of sub-contractors, which are not shown in Table 9, the two highest figures are those for the East and West Midlands, at 82% and 88% respectively. As has been noted earlier, these figures may seem somewhat at odds with the 'below-average' trends in workload and, especially, employment reported by firms in these regions this time, unless it is skill shortages that are acting as a constraint to growth.
By comparison, the proportions concerned over the availability of skilled labour, to work as direct employees and/or sub-contractors, are lowest in the more northerly regions, with just 25% in Scotland, and 34% and 38% respectively in the North and North West, reporting supply difficulties.
First posted: 1 February 2002. Last modified: 4 February 2002.
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