In my blog post of January 24th War for Talent Back on the Agenda for 2010 – http://tinyurl.com/ydrg3hk I talked of the slightly more positive signs that were starting to emerge in the UK employment market. In reality, what these signs really amount to are less bad news than we have been getting over the course of the last 18 months. Anything that stems the incessant torrent of bad news cascading down upon us has to be a positive!
Yet further less bad news is emerging this week from the World Economic Forum in Davos, where 2500 people from 90 different countries are gathered to “Improve the State of the World – Rethink, Redesign, Rebuild”.
PricewaterhouseCoopers have used the WEF to conduct their 13th Annual Global CEO Survey http://tinyurl.com/yc977zb
An encouraging sign to emerge from the survey has been a significant increase in the number of companies that will be adding headcount (39%) against those anticipating further redundancies (25%) in 2010. On the face of it this is a positive sign. However when you get in to the numbers, causes for concern emerge. Of the 39% of companies looking to add headcount, they are in reality only talking about adding a further 5% to the workforce. 27% of companies don’t anticipate adding any headcount whatsoever.
This news comes in a week when the United Nations Labour Agency warned of the potential for a jobless recovery. With 27 million people around the world having lost their job in 2009, this is a real cause for concern.
Some good news to emerge in the last seven days has come from the IMF, who have upgraded forecasts for global economic growth in the same week that the UK became the last of the G20 to drag itself out of recession. However in the face of the financial stimulus we have been given, 0.1% growth in the quarter is a very disappointing number. Perhaps we can hope that this is the crawl before the walk before the run! However in order for this to happen, Business and Political Leaders in Davos must focus their attention on initiatives through innovation that will create employment and as a consequence wealth on a global scale.
A return to confidence is clearly a good thing in the Executive Suite but this must now start to focus its attention on efforts to improve confidence across business. Jobs creation is the best way to achieve this.