Employment prospects at UK companies highest in 14 years

The 17th annual UPS Europe Business Monitor reveals that well over a third (38%) of business leaders in the UK say they plan to increase their workforce over the next 12 months. That figure is the highest since the question was first asked in 1993 and is up 2% on last year's results (36%). An additional 46% plan to keep their workforce about the same as it is now, meaning 84% of senior UK executives predict a stable or growing employment situation in the coming year.

The UK's employment optimism is mirrored by confidence in the general economic climate; with over half of respondents (56%) reporting that the economic position of their company is better than it was 12 months ago and only 8% reporting that it is worse. The net result (the number reporting a better position minus those reporting worse) is 48%, up a significant 9 points on last year (39%) and 4 points ahead of the European average (44%).

The outlook for 2008 is equally optimistic, as 55% of UK business leaders surveyed predict the economic position of their company will be better in 12 months' time.

Business leaders across Europe identify global competition as the biggest challenge to business growth - 48% of all respondents think this is one of the most critical issues, ahead of the cost of labour (46%), high fuel and energy costs (41%) and lack of skilled workforce (32%). Compliance with EU regulations and a strong local currency were seen as the next biggest challenges (both 26%), followed by labour regulations (20%), corporate tax (18%) and finally protectionism (10%).

The UK identified lack of skilled workforce as an issue more than any other country surveyed, followed by the Netherlands (40%) and Germany (37%). Italy seemed to have the most confidence in the skills of its workforce, only 15% reported this to be a big challenge to business growth.

European respondents report that globalisation is helping their business, compared to 12% who think that it's hurting their company and 18% who think it's neither helping nor hurting.

Asia is still seen as the global region offering the best opportunity for business; 49% of European respondents felt Asia had the most potential for companies in their country, ahead of Europe in second position with 21%. South and Central America came in third on 9%, followed by the Middle East (8%), North America (4%) and Africa (2%).

Jim Barber, Managing Director, UPS UK & Ireland, comments: Following the recent turbulence in the economic climate it is very encouraging to see businesses in the UK and across Europe feeling optimistic, especially in terms of the employment outlook. UK businesses seem to be open to the opportunities presented by world trade, overwhelmingly seeing globalisation as a benefit to their business and bucking the European trend of identifying global competition as the biggest challenge to business growth.