CIPD: UK employers cautious on hiring

<p>The UK’s economic recovery is likely to remain slow.</p>

The economic recovery in the UK may remain slow, after a new report found employers are still cautious about creating new jobs.

A survey by the Chartered Institute of Personnel and Development (CIPD) stated that a large rise in employment is not likely in the next few years.

With the Bank of England claiming interest rates will be held at the record low of 0.5 per cent until unemployment falls to seven per cent, this could have a knock-on impact on the economy.

The CIPD's labour market advisor Gerwyn Davies stated that employers are trying to focus on improving productivity in the medium to long term, rather than adding new positions.

He said: "The prospects of better economic conditions might therefore persuade them to invest more in the business and make more intensive use of existing staff, for example, by increasing working hours."

The CIPD report is in contrast to figures revealed in the US last week that showed 204,000 jobs were added to the economy in October, which beat expectations by around 80,000 positions.

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