Critical Analysis of Current Labour Market Trends

Topics: Labour economics, Human resources, Employment Pages: 7 (2377 words) Published: December 17, 2012
Analyze the current graduate employment opportunities
within Human Resources

Within this assignment, I will be examining the current opportunities graduates have in human resources and the trends that affect their chances of employment such as; labour market, the impact of external factors influencing career patterns and how this affects the ethical and cultural issues, the relevant use of competences and professional standards and this affects graduates applying and dealing with the pressures of employment after graduating. In addition, I will be evaluating as a graduate, the positive and negative impacts faced in this market.

Labour Market

Cambridge business dictionary (2011) examines that the labour market is ‘the supply of people in a particular country or area who are able and willing to work, in relation to the amount of jobs available’. The office for National statistics (2012) examined that ‘ The economy has shrank by 0.5% in the second quarter of the year ‘estimating the UK being in recession for the past nine months. The current labour market is having an increasingly negative effect on businesses and employee’s. Unemployment figures have increased over the past decade allowing more people to be on benefits costing the Government more money; The Guardian (2012) has recognized that unemployment figures have risen up to 2.59 million. The Labour Relations Commission (2011) explained that recession leads to significant changes, which cause lasting changes in the way firms, manage human resources and trading unions. Human Resource departments also have a strategic way of dealing with recession to save money within an organization. A study by CIPD (2012) was conducted amongst 117 employers which found that there are various ways to cut costs during the recession; Implementing a salary freeze (13%), Raising employee contribution to healthcare premiums (20%), Increasing benefits communication (32%) and Organization wide restructuring (23%).

The Organisation for Economic Co-operation and Development (OECD) 2009, found that between 1998-2006 the demand for graduates within organisations had decreased, due to graduates within 25-34 years had a lack of qualifications for skilled jobs, this affects all sectors, including human resources as it links back to the educational system as they are not supplying students with the essential skills that employers look for. CIPD’s employee outlook report (2012) establishes that around 50% of young people at university, are unable to find work in jobs related to their subject, stating 46% not carrying on into their field of work. Migration is a major factor when considering labour markets, Salt, J (2006) found that due to the lack of skills graduates and school leavers have gained, half of the employers from the financial sectors tend to recruit talent from outside of Europe, this is having a negative impact on the employment figures and jobs available for graduates. It is shown from Salt (2006) study that there are hard to fill jobs in engineering (21%) and Finance & IT (18%), therefore showing no real underlining issues and concerns within the business and HR sector allowing more prospects for students to find jobs more quickly.

External factors of influencing work and career patterns
External factors influence the importance and extent of which any changes are significant for the future of your organisation. In order to examine the patterns, the uses of PEST (Political, Economic, Social and Technological) issues arise. Thompson (2000) explained a study on political changes that impact an organisation you would need to consider the legislation, global change, and maternity rights etc. The care quality commission (2012) ensures these standards are met in the health sector, specifically the NHS in which it explains their strategy and improvement of regulatory functions for improving working lives. Business decisions are based around the political factors; due to the...
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