The short-term jobs outlook has ‘turned positive’ for the first time in more than a year, research finds.

The short-term jobs outlook has ‘turned positive’ for the first time in more than a year, research finds.

A report of 1,000 employers by the Chartered Institute of Personnel and Development (CIPD) shows the net employment balance, which measures the difference between the proportion of employers that intend to increase total staffing levels and those that intend to decrease in the first quarter of 2012, has risen to +6 from -8 since the winter 2011/12 quarter. This is the report’s first positive figure for more than a year.

However, the institute warns that optimism should be tempered by employers’ continued caution about the medium term, which taken together with recent weak economic data, suggests a high risk that many employers may find it necessary to reassess staffing levels before the year is out.

The survey’s 12-month balance, which gives a longer-term perspective on the net effect of recruitment and redundancy intentions, has risen to +3 from -6.

The private sector is driving much of the upturn, with the net employment balance for the private sector rising to +25 compared with +10 three months ago. Meanwhile, the net employment balance for the public sector (-32) is at its least negative since the winter 2009/10 report – and compares to -49 last quarter.

The continuing pressure that employers face to cut costs is evidenced by an increase in the proportion of organisations that are intending to offshore jobs to other parts of the world in the 12 months to March 2013, from 6 per cent to 8 per cent. Eight out of ten (79 per cent) employers cite cost cutting as the main reason for offshoring jobs.

Gerwyn Davies, public policy adviser at the CIPD says, ‘The jobs market is desperately seeking good news, so this latest set of positive figures is very welcome. However, any short-term jobs recovery may not be sustained because of the zigzagging economic backdrop.

‘News of a double-dip recession may cause some employers to reassess current staffing levels, especially while labour costs are rising and productivity is falling. The current economic situation facing recruiters looks unusually difficult to read, which may lead to swings in confidence for the rest of the year.’

See also: Promising growth for SMEs