Jobs confidence in Wales rises – along with pay expectations

Workers across Wales are showing above-average confidence in their job prospects, with pay expectations set to increase as a result, according to new research.

The data has revealed that two-thirds (66%) of Welsh workers are confident in their job over the next six months, above the UK average of 60%.

This optimism is translating into heightened pay inflation expectations, with workers across the country indicating hopes of an average pay rise of 4.6% this year, above the UK average of 3.8%.

However, fewer employees in Wales suggested that they would take some form of action – such as seeking a new role in their current business or changing employers – than the UK average.

Less than half (43%) of Welsh workers would take action if a salary increase wasn’t an option this year, compared to 68% of UK respondents overall.

The findings are from the latest Robert Half Jobs Confidence Index (JCI) – an economic confidence tracker produced in partnership with the Centre for Economics and Business Research.

The JCI is made up of four equally weighted pillars, each measuring a factor which contributes to jobs confidence, job security confidence, pay confidence, job search and progression confidence and macroeconomic confidence.

Skills shortages

James Fortnam, Market Director, Wales, Ireland & Scotland at Robert Half, said: “Job confidence across Wales is clearly high and there are likely a number of reasons for this.

“Growing skills shortages coupled with the recent reports that the country has the highest rate of economic inactivity are no doubt leading to staff feeling optimistic about demand for their skills.

“While this has created an environment where pay rise expectations are higher than the national average, employers can be somewhat comforted by the fact that fewer people are likely to take direct action if they don’t receive the salary increase they are after.

“Of course, that doesn’t mean that businesses can ignore these high levels of confidence. Instead, it should be a catalyst for firms to consider their holistic employment packages and how elements such as tailored benefits packages or career progression programmes can act as more effective attraction tools.”