Prospects are looking good

A new national report has revealed that employers have become more pessimistic, with half expecting to have fewer staff in a year's time.

A survey of 1,200 firms found that the public sector was particularly negative about the future employment situation.

The Chartered Institute of Personnel and Development said the findings were not surprising, given the recent spate of job losses and pre-election pledges to cut public sector waste.

Chief economist John Philpott said: "With the labour-intensive, consumer services sector experiencing tougher times, and with public sector employers looking to make efficiency savings, the survey might be signalling more than an end of the jobs boom."

But Len Cruddas, chief executive of York and North Yorkshire Chamber of Commerce, said: "We are certainly bucking the trend as far as the private sector is concerned. The economy is booming. Generally we have high levels of employment but there is a skills shortage.

"The worst case in North Yorkshire is in Scarborough of 2.6 per cent unemployment. In Harrogate and York it is about 1.5 to 1.6 per cent which is, in practical terms, almost full employment."

He credited the healthy outlook to reasons such as the area being an attractive place to live with good countryside, schools and town centres with a high quality of life. "If you are locating a business these are factors you think about."

However, Mr Cruddas said: "There's a general concern with the public sector that there's pressure from Government on reducing the number of people."

The survey also showed that more than one in four employers said they planned to recruit migrant workers to help fill a shortage of skilled staff.

Three out of four said pay rises would be between two per cent and four per cent in the coming year, although some firms expected directors' pay to increase by more than five per cent.

Adam Pursery, marketing director of York-England.com, the inward investment agency for York and North Yorkshire, said: "This area was benefiting from changes to the public sector, as the recent announcement that 110 civil service posts would move to York illustrated.

His impression from the private sector was also "positive".

"In North Yorkshire people are still telling me there's a shortage of labour and they are tending to use migrant labour, especially in the food and drink industry."

Stephen Silvester, an inward investment officer for East Riding of Yorkshire Council, also disagreed with the gloomy forecasts.

"We have had notable successes recently in attracting large numbers of jobs to the area including an internet-based retailer in a £12million project with 200 plus jobs. Inquiry levels are good and there's strong demand for sites."

Updated: 11:13 Tuesday, May 17, 2005