Bleak look to automotive sector

Edited by the Engineeringtalk editorial team Apr 11, 2003

Employment prospects in the UK's automotive industry are at their lowest Q2 balance for the sector since 1999, according to the UK's longest running survey of employment trends.

Employment prospects in the UK's automotive industry are at their lowest Q2 balance for the sector since 1999, according to the Manpower Quarterly Survey of Employment Prospects, the UK's longest running survey of employment trends.

The survey shows that a net balance of only 2% of employers working in automotive manufacture will be taking on staff in the period April-June 2003.

The net balance is down slightly quarter-on-quarter (down 1 point) and year-on-year (down 2 points).

This puts the industry near the bottom of the sector league table.

The Manpower survey, in its 37th year of publication, asks 2000 UK companies, across 11 regions and 21 industry sectors, if they expect an increase, decrease or no change in their staffing levels for the quarter ahead.

A 'net balance' of job gains is calculated by subtracting the employers planning to decrease staffing levels from the number of employers planning to take on staff.

Hazel Detsiny, from Manpower, said: "Employment prospects in manufacturing as a whole are below the national average and the automotive industry is no exception".

Auto manufacturing contributes to poor employment prospects in UK manufacturing, which has reported a net balance of 4%, well below the national average of 11%.

This is the lowest Q2 result for four years and the second successive quarter-on-quarter fall, suggesting the recent rally in prospects for Manufacturing may be over.

Five of the seven manufacturing sectors remain below the national average (as well as automotive, textiles, other manufacturing, electronics and chemicals are all below 11%), driving the overall poor result.

Only wood and paper and food and beverages are performing strongly in manufacturing.

All UK regions are planning to take on more staff in the second quarter.

However, evidence of a North/South employment divide is emerging.

The North West is now the best region for jobs, with a net balance of 18% of employers set to recruit staff this quarter.

The North East has also reported its highest Q2 balance in 10 years.

Wales, too, is in good shape with a net balance of 16% of employers planning to hire in the coming quarter.

The outlook is gloomier further south.

The South West and South East are both below the national average, each reporting a net balance of 9%, the weakest Q2 job prospects in these regions since the early 1990s.

Greater London, with a net balance of 7%, lies joint bottom, with Scotland, and is still suffering from a lack of confidence and the impact of results in the troubled financial sector.

Like last quarter, small locations are most optimistic about employment prospects for next quarter with 18% planning to take on staff, well above the national average.

Medium locations are in line with the national average, reporting a net balance 11%.

Micro and large locations are less likely to be taking on staff next quarter, although both have reported positive net balances (8 and 5%, respectively).