Monster Job Confidence Index
Monster, in partnership with The Centre for Economics and Business Research Ltd (Cebr), are very proud to produce the inaugural Monster Jobs Confidence Index; the most authoritative report on the key economic, environmental and cultural factors influencing confidence in the UK labour market.
Business and consumer confidence are regularly measured however until now there hasn’t been anything that measures how confident workers can and do feel in the labour market. The last few decades have brought about great changes in the way people work, the UK has seen huge growth in labour market flexibility. There are now more people than ever before working in self-employment and part-time jobs as or have zero-hour contracts. Whilst some of the recent changes are undoubtedly positive for workers, all are not as is clearly demonstrated by the recent news that half a million more workers are living in poverty than five years ago, taking the UK total to 4 million.
There is higher female participation in the workforce and we have seen an increase in net migration. Add to these factors an ageing population, with more people expecting to work beyond their retirement age and the impact of Brexit which, beyond the continued uncertainty, remains to be seen; and we must conclude that to fully understand the labour market we need to factor in qualitative and emotional, as well as quantitative, measures.
We believe it is vital to have this type of information to effectively evaluate the dynamic UK labour market and took the view that while the traditional measures of labour market health – unemployment and job vacancies levels – are valuable; they are not, in of themselves, enough to fully understand the complex UK labour market of 2019 and beyond.
We need to better understand the factors affecting how confident an individual is likely to feel about their ability to find a suitable job in the short-term, realise their career potential and, ultimately, build a better future for themselves and their family.
What we’re measuring
Employment figures alone clearly don’t tell the full story of the UK labour market; understanding the quality of and sentiment towards jobs and careers is important. Can people in poverty work their way out of it? How do people feel about their future career prospects?
Do workers and job seekers feel optimistic or pessimistic about the changing political landscape or constrained by social mobility issues? Has the shift from a manufacturing economy to a service economy and the resulting decline in trade unions translated to workers feeling less protected and unsure about their labour rights?
These are some of the things we measure in our Monster Jobs Confidence Index. We know that there are now fewer, if any, jobs for life and long-lasting political uncertainty, we need to understand the impact of these changes on the UK’s workforce and the consequence for the UK’s labour market and productivity.
We have used ten macroeconomic indicators,two macroeconomic confidence indicators and four survey-based confidence indicators. All of these make up the Monster Jobs Confidence Index, a holistic view of the labour market indicator of how confident workers can feel.
Why this report is important to us
At Monster our vision is to help make every workplace happier and more productive, we passionately believe that great people make great companies and that everyone should be able to have the career they want. Whilst we appreciate that is an ambitious aim its one that should be achievable; the UK is one of the most developed countries in the world and yet, not everyone has the same opportunity to build a better life for themselves or the same chance of fulfilling their career potential. Today in Britain, career success is still largely determined by an individual’s background and where they live.
Our Monster Jobs Confidence Index is important because, in addition to providing an overview of current market trends, the findings will have practical significance for employers, HR industry professionals, workers and job seekers. To know how to bring positive and effective change we first need to identify and then understand where problems exist. The issues of motivation, job security and social mobility are hugely important and need to be measured in relation to the labour market health so we can identify the impact that changing recruiting practices can deliver.