Education facing ‘acute pressure’ amid UK jobs slowdown, CIPD finds

The education sector is facing “acute pressure” with vacancies becoming increasingly hard to fill, according to a quarterly report by the Chartered Institute of Personnel and Development (CIPD).Across all sectors, the number of UK employers expecting to increase headcount in the next three months has fallen to a record low, excluding the pandemic, as they face rising employment costs and growing global uncertainties.

The net employment balance (NEB) for education hit negative territory in the quarter, falling to -13 among employers in compulsory education,which includes primary and secondary education.

This fell to -7 among those in non-compulsory education, which includes vocational and higher education institutions.

Hard to fill vacancies are being felt across the economy but are highest in the public sector. While 33% of employers have hard-to-fill vacancies, this rose to 44% of public sector employers, with the problem being particularly acute in education (45%).

Overall, about a quarter of employers in schools and pre-schools were also reducing their staffing, the CIPD said.

The report’s overall NEB – the difference between employers expecting an increase in staff levels and those expecting a decrease in the next three months – fell from +13 last quarter to +8 this quarter. This again marks a record low outside of the pandemic.

James Cockett, senior labour market economist at the CIPD, said: “From April, employers across the UK have begun to feel the full effect of increases to National Insurance Contributions and the National Living Wage outlined in last year’s budget. They’re also looking at the potential impact of the Employment Rights Bill on employment costs and plans, and this comes at a time of global uncertainty. Employer confidence is low which is being reflected in their hiring plans.

“The Employment Rights Bill is landing in a fundamentally different landscape to the one expected when it formed part of the Labour manifesto in summer of last year. It was always going to be a huge change for employers but they’re operating in an even more complex world now.” 

He added: “It’s vital the government works closely with employers to balance the very real risk of reductions in investment in people, training and technology with their desire to reduce poor employment practice. The government can address employer nerves around the bill by prioritising an implementation plan with a clear phased timeline, alongside support and guidance for employers, and smaller businesses in particular.”