Budget will help to further buoy UK jobs market, says Reed

Tim Vye, divisional director of Reed Finance, the senior and executive-level financial recruitment specialist, comments on how the Budget will impact on the UK jobs market. 

He said: “There is a lot for businesses to be positive about in today’s Budget, with the reduced corporation tax, simplification of tax regimes and new Enterprise Zones all going some way to help drive optimism among business leaders. Optimism and confidence are crucial to the jobs market, and measures that can help reduce the burdens on business are welcome.

“In particular, it is important that job creation in the private sector is stimulated if it is expected to provide employment for public sector workers. Employers need to have confidence in the UK economy and their business’s outlook before signing off on any hiring plans.  

“Our experience has shown that so far the first quarter of 2011 has already seen a marked improvement in job opportunities compared to the same period last year. Reed has seen strong levels of activity and has seen significant year on year growth in permanent jobs – with job interviews and the numbers of candidates placed both up by around 15 per cent on the same period last year. The Reed job index, published by reed.co.uk earlier this month, also showed that activity levels in February were at their highest since the index was launched in December 2009. 

“And while the Office for Budgetary Responsibility has cut its growth forecast for 2011 from 2.1% to 1.7%, most businesses and their finance directors were already expecting this and many have already factored it into their forecasts and plans for the year ahead.” 

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