Nearly half a million jobs could be created over the next year, according to research from the Institute of Chartered Accountants in England and Wales (ICAEW).
The latest Business Confidence Monitor predicts employment growth to rise 2.2% over the next 12 months. This could provide a further 450,000 private sector jobs.
The Index also reveals that confidence continues to climb to record highs. Confidence for Q2 2014 rose to a balance of +37.3, increasing from the +37.2 recorded for Q1 2014.
Other key findings:
- The UK economy will grow 1.2% in Q2 2014
- Over half of businesses are still experiencing a skills gap
- 64% of manufacturing and engineering businesses have spare capacity, compared to 40% in the financial services sector.
Michael Izza, chief executive of ICAEW, said:
“This quarter’s BCM results show that the recovery is becoming more solid. Employment growth is accelerating and salary growth is now keeping pace with inflation. Business expectations continue to improve across all regions but issues are still there.
“The skills gap is widening, exports are not rising fast enough which could further exacerbate the UK balance of payments deficit. Overall though the Chancellor will be pleased with the current state of the economy with a year to go until the general election.”