Strong employment growth continues in June

June completes a second quarter of consistently strong hiring activity, according to the latest Michael Page Employment Index.

Almost half of the employers surveyed planned to hire new staff in June, with a further 44% expecting employee numbers to remain stable. This positive hiring trend is the result of sustained economic growth and increasing business confidence as the effects of the global financial crisis recede.

A strong focus remains on front line functions as businesses build their capacity to generate revenue in the early stages of the economic upturn. Over half of new hires will be mid-level professionals in front line functions such as sales and account management. Back office functions such as accounting and marketing comprise 18% of new hires. The requirement for back office functions is likely to increase throughout 2010 in order to manage the workload created through front line activity.

Retention remains a key concern for companies during this early growth phase. 69% of companies surveyed have increased staff training budgets since 2009 to retain people with business critical skills.

Driving the investment in training and development is the fear of a return to the skills shortages experienced in pre-economic downturn times. Close to two-thirds of respondents were concerned that a professional skills shortage would re-remerge as an issue for their business during the second half of 2010.