Number of charities planning to hire staff is increasing, labour market study suggests

Gerwyn Davies, public policy adviser at the CIPD, says the findings should be treated with caution

Gerwyn Davies
Gerwyn Davies

The number of charities that plan to hire staff over the next three months has risen slightly, new figures suggest.

The Chartered Institute of Personnel and Development’s quarterly Labour Market Outlook shows that 73 per cent of voluntary sector employers surveyed said they planned to take on staff, compared with 69 per cent in the previous quarter.

However, there is also a two percentage point increase in the number of charities planning redundancies in the same period, from 31 per cent in the last survey. Personnel staff from 125 voluntary organisations answered the questions about recruitment and redundancy for the study.

The study also contains an index that compares the proportion of charities that plan to create rather than cut jobs. This shows that there has been a small increase in the proportion of voluntary sector organisations that are planning to hire staff rather than cut jobs in the next three months.

But the study suggests that conditions will worsen slightly later in the year.

Gerwyn Davies, public policy adviser at the CIPD, said the voluntary sector findings should be treated with some caution because of the small sample size.

He said the survey was carried out before it was announced that the country had gone back into recession and prior to the latest developments in the Eurozone crisis, so employers might become more cautious in the medium term.

The increase in the number of charities hiring rather than making staff redundant had more to do with a fall in redundancies than a significant rise in new jobs, Davies said. The rise in the proportion of charities planning pay rises was down to a "lagging effect" as organisations started to give small rises after pay freezes. "It is all relative: we are not talking big increases just increases on what has gone before," he said.

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