UK Companies Plan to Hire in Coming Months

U.K. companies are set to boost their headcounts in the next three months, with firms in both the manufacturing and services sectors planning to hire new members of staff at the fastest rate in 16 years, a new survey shows.

Job creation in the U.K. will continue to accelerate for the remainder of the year, according to the BDO Employment Index, compiled by the accountancy firm, suggesting that university students graduating in 2014 face better job prospects than any other class year since the financial crisis.

The BDO Employment Index, which predicts companies’ hiring intentions in three months’ time, rose from 108.8 in June to 109.6 in July, surpassing its pre-crisis peak to reach its highest level since 1998.

Accountancy firm BDO said July’s gains were driven by the uptick in hiring intentions among services firms in particular. Inflationary pressure is likely to be a key reason behind the longstanding levels of confidence among businesses, the group said.

Last week, the National Institute of Economic and Social Research (NIESR) said it expected the U.K. economy to grow by 3 percent this year, up from 1.7 percent in 2013. This is slightly less than the 3.2 percent forecast by the International Monetary Fund.
U.K. economic growth has been 0.5 percent or more per quarter for the last six consecutive quarters—nearly twice the rate seen between 2010 and 2012. The labor market also continues to improve, with total employment now more than 4 percent higher than it was at the start of 2008, NIESR said.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza