The hiring intentions of UK firms are at “sky-high” levels with figures stronger even than those during the boom of the mid-2000s, according to the latest Business Trends Report by accountants BDO.
BDO’s Employment Index measures 113.0 - well above its long-term trend – suggesting that UK firms will continue to boost job creation in the coming months.
However, the firm describes the UK’s stalled productivity levels as “puzzling” given current levels economic expansion. British workers’ output per hour has been static during the last two years of the recovery. Such a long period of flat productivity, it says, is unprecedented since World War II and the trend is unique amongst advanced economies.
However, BDO's Output and Optimism Indices, which predict economic growth three and six months ahead respectively, remain significantly above the 100 mark, which indicates growth above the long-term trend.
Peter Hemington, BDO partner, said: "While it is encouraging to see strong business confidence, the UK's continuing poor labour productivity performance is a very significant concern. Although employment growth in recent years has been strong, much of this has been in part-time jobs. Productivity ultimately determines our prosperity so it is a crucial area that must be addressed. Policymakers of all persuasion must take on this productivity puzzle.”
Also this week, a new survey by Samsung may have uncovered some of the reasons for Britain’s poor productivity levels. The poll, conducted in conjunction with Leeds University, found that workers are unproductive for 70 days of the year, with respondents admitting they only feel like they’ve actually achieved something on an average of 3.6 days a week.
The research suggests that businesses are losing £250 million a year as employees are interrupted by everything from office noise to email overload.
The poll of 2,000 office workers found that 22% interrupt their workflow every 22 minutes to check their emails and 38% check at least every 15 minutes. The biggest distractions were loud talkers in the office (57%); the phone ringing (39%); and unnecessary meetings (26%).