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Critically discuss current labour market trends in the supply of and demand for skills: CIPD Level 7 Strategic People Management Assignment, UK

Question 8
AC 2.4 Critically discuss current labour market trends in the supply of and demand for skills.

In most countries recent years have been ones in which unemployment levels have been low by historic standards. Critically discuss why this situation has evolved. How is it affecting the management of people in your organisation?

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Pointers for students :
Use most up to date picture on labour market – using ONS, Labour market quarterly surveys or data from your own country. Look at current employment market trends such as low unemployment, decline in entry level jobs making it more difficult for young people to enter job market, increase in requirement for highly skilled workers, people who have left workforce but not included in government unemployment figures.

You need to answer the first and second parts of the question. How has this situation evolved? You may want to relate this to your own context such as the increasing use of technology, Brexit, rising inflation, war. What are the main drivers of skills shortages in your organisation or one you are familiar with.
Analyse how an organisation will react when a labour market is tight. What happens to wages and working conditions, for instance. How does this affect staff? What are the issues that managers may have to deal with because of these changes? Use industry examples that reflect most current picture. E.g., removal of pension cap to encourage doctors/ skilled workers back to work who already have large pension pots, for instance.

Choose two strategies and justify their use such as hybrid working, reward strategies, internal labour market, links with colleges, universities and schools, innovative recruitment strategies, retention strategies etc.

Apply to your own organisation. Identify some job roles or skills areas that are tight. Evaluate whether your organisation is using the most effective strategies for recruitment. Make justified recommendations for improvement.

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