In 2012 there were major cutbacks in recruitment. Firms were unsure of how much money they had in the long term, whether they could afford to expand or should focus their attention on securing their current position. The majority went for the latter. According to High Fliers professional services companies downgraded their recruitment numbers three times last year. It meant they had 800 fewer trainee positions than they had originally targeted. Even graduates know how tough it is to find a job; in the City, investment banks hired 900 fewer graduates than they had expected to at the beginning of the year.
How does this relate to the business travel industry? The impact is twofold. Firstly if there are fewer people moving around then there is less of a need to accommodate those recruits and find them somewhere to live albeit temporary. Serviced apartments are increasingly part of that process, providing a centrally located flexible place to stay. The second relates to confidence. Cautious businesses are less likely to recruit new hires as budgets are tightened.and business travel is usually one of the first areas to come under scrutiny when cutting costs. Firms increasingly look for cost effective solutions to help them find places to stay when they are visiting their offices or clients.
For 2013, High Fliers Research offers an indication of what will happen to recruitment. Half of the employers reported, plan to hire more graduates in 2013. Another third says they will maintain their 2012 levels. The top employer for new graduates in 2013 is Teach First with 1,260 vacancies, followed by the consultancy firms Deloitte and PWC, who are both planning to hire 1,200 new graduates. All in all, the study suggests the UK’s top employers are planning to hire 18,306 graduates in 2013, an increase of 2.7% on 2012.
This taste of growth is welcome news for the service industry supporting those in the corporate world and the City of London. London’s serviced apartment operators, hotels, airports and restaurants will be amongst many that benefit from the next influx of fresh recruits and graduates. Serviced apartments in particular will be spurred on by these figures as they continue to grow in popularity with businesses seeking long term accommodation in London.
The forecast growth in recruitment in 2013 will not only benefit the corporates hiring but will likely have a positive affect along the chain. When the City is confident and pushing for growth it benefits each of the industries that supports and services it’s people.