Impact of UK Labor Market Trends on HRM Practices and Strategies

This essay examines the current state of the UK labor market, highlighting the significant impact of the coronavirus pandemic on employment rates and HRM practices. It discusses the decline in employment, particularly among young and older workers, and the challenges faced by the retail and ...Read More

HRM consultant
Table of Contents

Topic: Current labour market trends and figures.............................................................................1
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

Topic: Current labour market trends and figures
INTRODUCTION
The labour market refers to the supply and demand of the labour where employees provide
the supply and the employer creates the demand (Coates and Dutson, 2021). It has been seen that
the coronavirus has created a significant decline in the employment rate along with many new
trends based in current labour market situation. These current situations of decline employment
and coronavirus leads significant implication on the HRM that is being discussed within the
current essay.
Main Body
The current labour market situation and analysis comprises of a large monthly falls that
has been seen since the start of the coronavirus pandemic. Further, as per the Labour Force
survey it has been seen and analysed that for the three months till the February 2021 small
quarterly decrease has been seen in the unemployment rate as the economic activity rate are
started to increase but still the employment rate is continued to fall due to the coronavirus
restricts and total hours worked is also tend to decline mainly in the retail industry (Labour
market overview, UK: April 2021, 2021). Further, the job vacancy in the automotive industry is
also tend to decline by 23% from January to March 2021. Further, the large falls in employment
especially for the young and older people are seen starting from Jan 2020 till Aug 2021 that has
been reflected by the current bar chart:
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Figure 1:Large falls in employment of UK, 2021.
The above shown graph is presenting that the number of people who are claiming
unemployment related benefits tend to be fell by 51,100 in the month to August 2021 but still it
has been seen that the it keeps on remaining 865,100 million higher than in March 2020 when
corona virus was as it peaks (Coronavirus: Impact on the labour market, 2021). The other key
trends and figures related with the labour market of UK in current situation comprises of the
56,000 fewer people were get enrolled as pay rolled employment in March 2021 when compared
with February 2021 while the employment rate of the UK was estimated to be near around the
75.1% that is 1.4 percentage points lower than the last year and tend to be 0.1 percentage points
lower as compared with the previous quarter. Further, the employment rate of UK was estimated
to be near around 4.9% that is 0.9 percentage points higher than a year earlier but 0.1 percentage
points lower than the previous quarter. Further, an impact of corona virus is also seen on the total
number of weekly hours worked that was 959.9 million and it is down 92.3 million hours as
compared with the previous year and down 20.1 million hours compared with the previous
quarter. Along with this, a fall of 22.7% is seen in job vacancy as compared with a year ago and
underlying wage growth is around 2.5% for total and regular pay (Alkhodary, 2021).
A high implication of the current trend and labour figures is being seen on the retail and
automotive industry on UK as many issues and challenges are being faced in Requirement and
training function of the HRM. It has been analysed and seen that because of the Coronavirus
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restrictions, the retail sector of UK is being highly affected and not able to operate at their full
productivity. Along with this, high employee turnover is also being seen in retail industry due to
lack of motivation in the employees which tend to be scared from the spread of Coronavirus.
Thus, a latest trend and change in the HRM practises within the retail industry has been seen as
they had focus and emphasis on the online recruitment and selection of the employees who are
more talented and skilled to ensure higher productivity in the retail sector (Pariyanti, Rosid and
Adawiyah, 2021). An emphasis on making use of online or E-HRM system has been seen that
comprises of the web based tool to effectively automate and support HR practises from a
distance through making use of the information Management System, Salary Management
System, career development system, Learning and Training System, Idea and Creativity
Exchange System. Furthers, use of various online portal and software such as Icims, UltiPro,
Jobvite, etc. are also made within the Retail industry as the latest trend to support better
recruitment and selection of employees (Mirfakhar, Trullen and Valverde, 2021).
Further, a negative impact on the job satisfaction and motivation level of within the
labour market of automotive industry has been also seen as a continuous fall in their productivity
has been also notice at the time of Corona virus pandemic. Thus, adoption of effective
motivation plan and online training programmes has been seen and observed as the lasted trend
within the automotive industry based on current situation (Alkhodary, 2021). Use of many
motivation theories such as Herzberg Two factor theory and Maslow need hierarchy theory has
bene seen and made by the HRM to support higher motivation and confidence level in
employees along with meeting there training and development need. Regular training has
become a vital function of HRM within automotive industry that needs to be continuously
provided to the employees in order to boost up their confidence and skill level along with
ensuring higher efficiency and creativity level to ensure higher success and productivity level
within the automotive industry (Pariyanti, Rosid and Adawiyah, 2021).
CONCLUSION
Based on the findings of the current essay, a summarisation has been made that the corona
virus restricts has created a significant downfall in the labour market of UK that had many
implications on the HRM practises. The retain industry is facing issues in recruiting talented
emolyess thus, use of e-HRM and online recruiting software has been seen as its implication on
HRM practises. Further, it has been summarised that the employees within the automotive
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industry are feeling de-motived and their efficiency level has been also reduced thus, effective
training and development programmes are analysis as effective HRM practises and function
based on current labour market situation.
REFERENCES
Books and journal
Alkhodary, D., 2021. THE IMPACT OF E-HRM ON CORPORATES SUSTAINABILITY: A
STUDY ON THE SMES IN JORDAN. International Journal of Entrepreneurship, 25(6),
pp.1-15.
Coates, N. and Dutson, R., 2021. THE HR CONSULTANT–AN EXPERIENTIAL LEARNING
APPROACH. Organisation Studies and Human Resource Management: An Educator's
Handbook.
Mirfakhar, A.S., Trullen, J. and Valverde, M., 2021. How can CEOs influence HRM
implementation? Unfolding top management’s role in HRM. The International Journal of
Human Resource Management, pp.1-30.
Pariyanti, E., Rosid, A. and Adawiyah, W.R., 2021. Workplace deviant behavior among
employees of Islamic-based universities in Lampung: the moderating role of Islamic
workplace spirituality. Journal of Applied Research in Higher Education.
Online:
Coronavirus: Impact on the labour market. 2021. [Online] Available Through:<
https://commonslibrary.parliament.uk/research-briefings/cbp-8898/ >.
Labour market overview, UK: April 2021. 2021. [Online] Available Through:<
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemp
loyeetypes/bulletins/uklabourmarket/april2021 >.
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